Woman sues U.S. Bank, says it wouldn't modify mortgage

CLARKSBURG - A homeowner is suing a bank after it allegedly failed multiple times to complete loan modification and foreclosed on a home.

Sabrina K. Keefer-Miller filed a lawsuit Aug. 29 against US Bank N.A., doing business as US Bank Home Mortgage, and John Doe Holder in Harrison County Circuit Court, citing breach of contract, negligence, misrepresentations in debt collection and unconscionable debt collection. The lawsuit was removed to U.S. District Court for the Northern District of West Virginia on Sept. 27.

According to the complaint, on Aug 5, 1998, Keefer-Miller and her then-husband purchased a home and entered into a mortgage loan providing a initial principal balance of $64,500.

In June 2004, Keefer-Miller says she divorced her ex-husband and per the divorce decree, her ex-husband was to continue living in the home and was responsible for payments.

The complaint states that in December 2007, her ex-husband was in default on the mortgage and she agreed to help make the loan current in exchange for a deed on the property, which was recorded Feb. 14, 2008.

According to Keefer-Miller, in early 2010 she began having difficulty with the loan payments and contacted U.S. Bank about loan modification options. She alleges that after discussing her financial situation with the bank, she submitted a modification application and waited several weeks without hearing from the bank.

Keefer-Miller says that in the early summer of 2010, she contacted U.S. Bank again and was advised that more documents were needed and that she should not continue making monthly payments because those would show the bank that she did not have a need for a loan modification.

The complaint alleges that after further delay and silence from the bank, Keefer-Miller contacted the bank in November 2011, at which time she was told that she no longer owned the home and that it had been foreclosed on, although she alleges she never received any foreclosure notices.

Keefer-Miller says that in December 2011, she received a notice to vacate the property, at which time she hired an attorney who worked with U.S. Bank to rescind the foreclosure based on lack of notice and dual tracking of the loan modification process and foreclosure.

According to the complaint, Keefer-Miller borrowed money from friends and family to keep the loan current and was current in April 2012, but continued to struggle with payments. She states that in July 2012, she again contacted U.S. Bank about loan modification and was told she would have to start the process over again and she would receive an application in seven-to-10 business days.

According to Keefer-Miller, she did not receive an application until December and completed and returned the application in January. She says that in April, U.S. Bank contacted her and explained it needed further documents, which Keefer-Miller states she resubmitted. Keefer-Miller claims that she never received any documentation on the submitted loan modification application and on July 16 US Bank again scheduled her home for sale.

Keefer-Miller is seeking an undisclosed amount of damages. She is being represented in the case by Clarksburg attorneys Sara Bird and Colten L. Fleu of Mountain State Justice Inc.

Harrison County Civil Action No. 13-C-370-3
U.S. District Court for the Northern District of West Virginia case number 1:13-cv-220