SPENCER – A Looneyville woman is suing The Poca Valley Bank Inc. after she claims it committed fraud.
Lisa King entered into a land contract with the seller of the home for a purchase price of $85,000 on Oct. 13, 2009, according to a complaint filed July 18 in Roane Circuit Court.
King claims Poca solicited her to refinance the mortgage debt owed on the home in 2010 and, on Jan. 24, 2011, the appraiser provided an inflated appraisal of the home for $90,000 in connection with the loan application and to enable the origination of the loan.
Unbeknownst to King, the home only had a fair market value of $31,000, according to the suit.
King claims on Feb. 9, 2011, entered into a loan agreement with the defendant with an initial principal balance of $73,760, at an interest rate of 8.5 percent. The loan amount of $73,760 was the exact payoff amount the seller of the home owed to Poca.
Poca failed to disclose to King that the loan contained a balloon payment that came due after 7.1 years and the closing was conducted in a hurried manner so that King was not afforded a reasonable opportunity to understand the essential terms and import of the transaction.
In April, King learned of the actual value of the home at the time the loan was originated, according to the suit.
King claims the defendant misrepresented the value of the home and the loan was unconscionable.
The defendant’s misrepresentation was knowing, reckless and/or intentional and was fraud, according to the suit.
King is seeking compensatory and punitive damages. She is being represented by Daniel T. Lattanzi of Pepper & Nason.
Roane Circuit Court case number: 16-C-42
