WEST VIRGINIA RECORD

CHARLESTON -- A Fraziers Bottom man is suing Everhome Mortgage Company after he claims it wrongfully foreclosed on his home.

Federal National Mortgage Association was also named as a defendant in the suit.

On March 11, 2005, Nickolas Backes and the defendants entered into a purchase money loan secured by him home in an original maximum amount of $135,500, according to a complaint filed Sept. 1 in Kanawha Circuit Court.

Backes claims after his divorce and reduction of income, he sough a loan modification.

In March, Backes made his monthly payment to the defendant and on April 7, the defendants returned the monthly payment with a form letter, so Backes called the defendant and attempted to follow their instructions, according to the suit.

Backes claims in later that month he made his monthly payment and it was again returned, along with the same form letter he had previously received.

On May 8, Backes made his May payment and the defendant cashed the payment, according to the suit, but on June 5, he made his June payment, which was returned and not applied to his account.

Backes claims when he tendered his July payment, it was also returned and not applied to his account.

On June 24, Backes discovered that the defendants had conducted a foreclosure sale and purported to transfer the home from Everhome to Fannie Mae for the sum of $87,106.93, according to the suit.

Backes claims the defendants failed and refused to credit his payments on several occasions.

The defendants also intentionally sold Backes' home for an inadequate sale price, according to the suit.

Backes is seeking civil penalties in the amount of $4,400 for the defendants' violation of West Virginia code. He is being represented by Daniel F. Hedges.0

The case has been assigned to Circuit Judge Charles E. King.

Kanawha Circuit Court case number: 11-C-1517