Couple sue CMH Homes, allege predatory lending

CHARLESTON – CMH Homes, Inc., is being sued by a Charleston couple claiming it engaged in predatory lending practices.

Bank of America, NA; Countrywide Home Loans, Inc.; Prestige Title Company, LLC; Russell Williams; John Doe Appraiser; HomeOne Credit Corp.; and John Doe Holder were also named as defendants in the suit.

In September 2004, John P. Hissom and Patricia A. Hissom sought to purchase a home and visited several mobile home locations, according to a complaint filed Feb. 13 in Kanawha Circuit Court.

The Hissoms claim they entered into a transaction with CMH Homes and were assured they would be in their home in December 2004.

On Sept. 29, 2004, the Hissoms agreed to the purchase transaction and paid a $500 cash down payment and were provided with written documentation, according to the suit.

The Hissoms claim CMH did not deliver the home in December 2004 as it had previously promised.

CMH arranged for the Hissoms’ financing and represented that they would be in the house in the spring and they were directed to apply for homeowners insurance for the doublewide, which they did on Jan. 25, 2005, according to the suit.

The Hissoms claim on Feb. 17, 2005, they were directed to the sales lot of CMH to sign initial financing documents and were directed to sign a loan for $98,985.74, but did not provide them with copies of the documents.

On Feb. 22, 2005, the Hissoms provided a second down payment of $3,500, according to the suit.

The Hissoms claim in June 2005 they went to CMH to cancel the transaction and obtain return of the money they had already paid, but CMH refused and stated that they would be responsible for the home loan.

Countrywide represented that the mobile home was $109,000, when it was actually worth substantially less, according to the suit.

The Hissoms claim when the mobile home was finally delivered, there were significant defects with the home, including broken cabinets, sagging ceilings, wall strips that were falling off, weak spots in the floor, crooked door frames and missing and falling molding.

Sometime prior to July 2008, the Hissoms began struggling with the loan because of medical costs and in July 2008, Bank of America instructed them to sign a “special foreclosure agreement” under threat of foreclosure, according to the suit.

The Hissoms claim they were instructed to sign the documents and mail them back, which they did, and then they began to make payments as instructed.

Bank of America failed to apply several payments to the Hissoms’ account and referred them to foreclosure, according to the suit.

The Hissoms claim the defendants intentionally and/or recklessly misrepresented the value of the home and the land and caused them damages.

The defendants breached their contract with the Hissoms and violated West Virginia code, according to the suit.

The Hissoms are seeking actual damages and civil penalties. They are being represented by Jennifer Wagner and Daniel F. Hedges of Mountain State Justice, Inc.

The case has been assigned to Circuit Judge James C. Stucky.

Kanawha Circuit Court case number: 13-C-300