Banner Bank

Review: American West Bank stole $12,364.48 from me, very simple.

In mid 2013 American West Bank, acquired [redacted] which had been financially struggling for years. I had a mortgage on a commercial parcel with [redacted] when American West Bank took over.

At the time that American West Bank acquired [redacted] (and the Mortgage on my property); a portion of my building was damaged by a structure fire. I’d previously signed over all insurance proceeds to [redacted] bank that was received, reliant that when the last insurance proceeds where collected, [redacted] would assist to re-finance as they'd promised, with cost to repair the damages wrapped in. I’d never missed a payment, nor bounced a check with [redacted] in over 30 years of doing business.

Within 45 days of American West Bank acquiring [redacted], my commercial mortgage loan matured. I’d contacted [redacted] several times about extending and/or refinancing without receiving a response. When my calls and e-mails where returned, my loan had matured and the new account manager at American West Bank informed me that my property doesn't meet their LTV; because of the fire damage, which [redacted] received all the insurance proceeds for repair!,….(Thankfully, [redacted] paid down the loan with majority of the proceeds).

The property cash flowed at this time from other tenant’s income, and I’d still never missed a payment AND had the ability to continue making all payments. However, the new account manager at American West Bank refused to accept any further payments, nor extend nor refinance the loan. The new account manager informed me that they’d prefer not to renew or extend and that I’ve three choice’s.

1) Sign the property over to them via Deed in Lieu of Foreclosure

2) Pay it off immediately (knowing the difficulty I’ll have in refinancing a fire damaged building)

3) If not paid off immediately, and if I won’t sign it over to them, then he’ll start a judicial foreclosure process within 30 days.

At this time, I’d already bared tremendous expense on my own behalf in demo, engineering and construction cost that should have and was intended to be reimbursed by [redacted].

I immediately contacted three other banks. I was approved for financial options from all three other banks. I’m fortunate in that I don’t have a 9 to 5 hourly paying job; and that I’m successful in what I do.

Within a couple weeks I re-visited the American West Bank account manager and presented him with 4 items.

1) A commitment letter from Scott Valley Bank informing American West Bank that they’ll refinance the property for me upon my repair.

2) A contractors repair estimate to complete the repairs that Scott Valley Bank required to be done to refinance and amount of time it will take (90 days)

3) Proof of funds that I could pay cash for the repairs needed to be done.

4) A Letter of Intent from a business whom wants to lease the Suite when the repairs are done.

After presenting the 4 items above, I requested a 90 Day extension of the loan, simply allowing me the time to complete the repairs and refinance. American West Bank Manager denied the extension, and presented me with a document titled “Agreement for Deed in Lieu of Foreclosure” and instructed me to sign it. The account manager informed me that if I don’t, then he’ll start the judicial foreclosure process which he believed would take about 90 days from that point; because I was now in a forced default position by [redacted] because he wouldn't accept any payments. Bare in mind, if a foreclosure process started, the new bank won’t be able to refinance stemming from FDIC regulation. In turn, I obtained an attorney for the review of the document [redacted] prepared demanding for me to sign.

The attorney didn’t buy into it, little drama back and forth, eventually leading to a conference call requested by American West Bank, between my attorney and their attorney. Prior to getting on the call, my attorney received a letter of consent from American West Bank wanting me to agree to pay for their conference call attorney fee. My Attorney refused, as it was American West Banks desire to have their attorney involved, all I want to do is pay my bills, extend the loan for 90 days and pay off American West Bank! American West Bank Managers agreed to proceed with the call acknowledging that I refused to pay for their unnecessary attorney fees.

When American West Bank realized that they weren’t going to easily “take” the property away from me like a bully in a school yard, they agreed to extend the loan for 90 days “ONLY UPON ME SIGNING A NON DEFENSE CIT AGREEMENT”,…….. So, If I agreed, I’d have the 90 day extension, if I didn't agree they would continue to refuse my payments and pursue foreclosure. My attorney advised that legally I shouldn't sign it because I've no defense if they act in bad faith. However, If I don’t sign it, he understands that I won’t get my 90 days to extend, and refinance at another bank and will likely lose the building to American West Bank in the interim if the deal has to go to court.

I signed the Non Defense Agreement in good faith; the loan was extended 90 days. I completed all the work and paid cash for the repairs as I'd agreed; after catching up on all payments that they’d previously refused to accept, and continued to pay my interest.

At the time to refinance I was given a payoff amount by the account manager. Strapped for cash after paying for all repairs out of my pocket, I was barely able to bring it all together financially.

Upon attending the title company to sign papers to refinance I was informed by the title officer that the payoff was then increased by $12,364.48.

When I'd contacted the American West Bank Account manager about payoff, he replied "Need I remind you that you've signed a non-defense agreement",...eluding to their ability to technically steal from me in bad faith as my attorney had warned and that I'd no choice.

Although the loan was being paid off prior to year end, American West Bank Required me to pay interest on the money throughout the year end! Nowhere in any agreement does it allow American West Bank to act so frivolously.

Just prior to the refinance, when construction was 90% completed. American West Bank ordered an appraisal on the property on their own behalf. They were aware that I was refinancing. I'd kept my account manger up to date repeatedly. They where also aware that I'd just invested nearly $100K in repairs, and that the building was fully occupied at an 8% CAP upon completion of the repairs. After American West Bank received the appraisal results, I received an e-mail from American West Bank requesting to keep my business; which I respectfully declined. In turn, American West then forced me to pay for their $3300 last minute appraisal, which was obtained for their own benefit in an effort for them to try and keep my business. The Deed of trust on my property specifically states that the lender is entitled to expenditure reimbursements ONLY in the event their secured asset is jeopardized. American West was very aware that this was not the scenario, I'd just put 100K into it and additionally aware that the property was to be paid off within 30 days. They where additionally aware that I'd recently had to pay for my own appraisal through Scott Valley Bank. That is blatantly malicious, an abuse of power and a breach of their fiduciary and ethical responsibility.

The final charge of the $12,364.48 was for American West Banks frivolous attorney fees. Bare in mind “from the start of this process to the end the only thing that I continued to request was for American West Bank to continue to accept my current payments and renew the loan or allow time for me to refinance”. There was absolutely no reason for an attorney. My wife and I have impeccable credit and are financially stable. Their only reason for obtaining an attorney was for their attempt in trying to take the property.

Conclusion is, if I’d not agreed to their additional $12,364.48 in frivolous fees, the CIT extension would have expired, they’d already reminded me that I’ve no defense and that they’ll quit accepting my payments again and start a foreclosure process, on my newly remolded building that they're now aware was fully occupied and appraised for 70%LTV for the re-fi………. Extortion is the best and only way to describe what they've done. The reasoning I was given that they’d applied the additional fees was that “technically” they believe that they can get away with it because I’ve no defense in their mind. The account manager should be thrown in jail!Desired Settlement: Refund the money stolen by extortion.

Business

Response:

In exchange for certain accommodations from AmericanWest Bank (“Bank”), Mr. [redacted] and his company validly waived and released their claims against the Bank in an agreement effective 8/28/2013. They obtained the advice of outside counsel to represent their interests in connection with the disputes and release. The Bank also engaged outside counsel to represent its interests and to prepare the agreement. In accordance with the loan documents, the Bank was allowed to recover its legal expenses, which totaled $7,810.56. The appraisal ordered on 9/11/2013 was obtained consistent with the Bank’s policy, and its cost of $3,296.00 was charged to the borrower as permitted by the loan documents. The loan payoff quote was prepared assuming a payoff as of 12/30/2013, and included interest per diem information to calculate adjustments if the payoff date differed. The actual loan payoff did not charge interest beyond the payoff date of 12/23/2013. Although the borrower included funds in the payoff to pay interest through the end of the year, the extra interest totaling $880.79 was credited back to the borrower’s account on 12/23/2013. While we understand Mr. [redacted] was not pleased with these costs, the Bank appropriately recovered its costs in connection with the loan payoff.

Consumer

Response:

Revdex.com,

I have reviewed the response made by the business in reference to complaint ID [redacted] and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.

1) Please have [redacted] provide any type of "tangible verification of credit" to [redacted] for the amount of $880.79 as claimed. No credit was ever conveyed in my favor, nor was any additional interest entitled for [redacted] to charge me for in the first place. The E-mail attached with correspondence back and forth being POST 12/23/13 and denying any refund, verifies that I was never credited any interest money back, nor did they ever intend to. E-mail correspondence, combined with this response further solidifies their poor judgement of integrity.

Review: At the beginning of July, 2015 my husband and I received two checks from Banner Bank for excess escrow amounts in our account. According to the letter that came with each of them, Banner Bank is required by law to return these amounts to us if they exceed $50. We cashed both checks at our bank and I assumed that we received two of them since there were two of us on the account. I figured they had to split them in order to accomodate two payees. We used the money to take our family on a very overdue camping trip. When we returned from our 5 day vacation, I received an UNDATED letter in the mail from Banner bank stating that a stop payment had been placed on one of the checks because it was a duplicate. Because I cashed these payments at our bank, the money was debited from our checking account WITHOUT our knowledge or approval. We were lucky that we had the money to cover it. Today 07/09/15 I spoke with [redacted] at Mortgage Servicing. She stated that they would cover any overdraft charges, but would not honor the check! We cashed and spent these checks in good faith! We now do not have the funds to make it to next payday. I requested that they return the funds to us. She simply stated that there were not any funds on our account to do so and she would "see what can be done". There is absolutely no reason that we should be responsible for the bank's error. This is ridiculous. What happened to being responsible for your actions. The bank needs to return this money to us ASAP.Desired Settlement: Immediate re-issuance of this check....or electronic deposit to our checking account. We are trusting this bank to make things right. This is NOT how business should be done and it is no wonder that nobody wants to trust the banks!

Business

Response:

Banner Bank promptly contacted our client, and we have come to a mutually agreeable resolution to this matter.A copy of our 07-10-2015 letter to our client is attached.