Financing -- Loans/commercial bank lenders liability
I have had problems with the community bank holding 2 business and my home equity loan since I received the business and home in divorce. Their attorney is in an undisclosed LLC with my ex, helped him hide assets during divorce, former partner of his divorce attorney and was also my pers/corp attorney. They have done so many things they are too numerouse to list all but here are a few:
1. forced to add biz as add't collateral to home eq on its 1 yr balloon or refused to refi. Same attorney prepared mod, changing home eq from 20 to 1 yr balloon. Not given papers or costs to review before brought to me for signing.Taken back to back to be notorized.
2. Told not to make pmts on either until mod signed, reported 30/60 day lates to all 3 bureaues.
3. Ask for letter to correct finally faxed a typed letter, no letterhead, unsigned, my name spelled wrong, no info on me or loan.
4. Repeated calls asking for another, told not only customer.
5. 2nd year, both ballooned. Told wouldnt refi either (or fix credit still not repaired) unless I agreed a scriveners error made on a mtg my ex had and belonged to a property I was selling.Untrue, nothing to support it. I had to pay his mtg 176g, they took my remaining 50g. paid down home eq principle, not paying past due property tax on biz refied same time. Sent letter 2 months later saying if unpd in 3 wks foreclosing.
6. 3rd balloon. Given 3 month verbal extention to finish financials. 2 months later received committment letter subject to forbearance agreement not included. Wanting to read before signing told would "try" to get copy. Received copy with nasty email. Gave up all foreclosure defenses and any liability they had for past, current, future wrongdoings.
7. First refused to sign but after much intimidation agreed. Told had to wait an hour before picking up as revisions being made. One was the waiver of ex's financials for 2 months. He had not signed either previous mods or provided financials for 3 years and they knew would not in 2 months. Any default original mtg resulted in immediate foreclosure. Taxes unpaid, asked if would advance as have to pay if foreclosed anyway. Told to sign and then would discuss. If refused, would be in default on signing and have no defense! Refused so they accelerated all loans.
8. Found hard money to pay 2 of the 3 off. Refused to accept.
9. Served my tenants with notices to pay them direct 31 days after I stopped paying, without filing in court or notifying me. Sent threatening email at days end they would also take my nightclub proceeds leaving me no income.
10. Filed foreclosure last week on all 3 loans. Delivered full foreclosure papers containing all my loan, mtg, mtg mod info to all tenants. Is now hurting business and employee moral.
I have been so bullyed by this bank. Ex prior to divorce was taking everything, I had no control. Learning mtgs unpd when took over called vp promising to pay before 30 late (5 days). He left a voicemail 2 days later accusing me of being a theif, stealing my own companys money as reason they were unpaid. Luckily I was able to pay them all the next day, a day before promised.
They have humiliated, intimidated, threatened and terrified me for 4 years. I have always made my payments and cooperated. Is all this legal? What would you suggest? I have an attorney but cant afford an experienced one. He is fresh from school and not well versed on this type of law and no match for their sharks. Right now I am looking at losing my business (only income) and home in a short time!
Jayne, thank you for taking the time to ask your question and I am sorry you have suffered all that you have. As you explain it, I would say that some of what has taken place is not legal. While I can make a general statement based upon your explanation any kind of legal determination is going to have to be made by an attorney who practices in your state with a focus on this type of law.
An attorney is going to have to make a determination about:
1. What has been done to you and it's validity
2. What your current and future obligations are according to the existing agreements
3. What protections you are afforded under federal and state law.
This is by no means an exhaustive list, but are the top three things that I would have an attorney review. You can try and reduce the expense by having all of the pertinent documentation complete and easily organized. Anything you can do to reduce the amount of time the attorney has to spend on your case will reduce the cost. You may want to contact local support groups for referrals from people who have been in a similar situation as well as your state's Bar Association. They may be able to help find an experienced individual with a focus on this type of law who is within your price range.
I certainly understand your predicament regarding your current counsel and would recommend that you do all that you can to engage competent counsel. It may be expensive now, but it sounds like it is going to be even more expensive if you do not. I hope this helps and I certainly hope you find a resolution.