Nationstar Mortgage accused of fraud by homeowner

BECKLEY - A man is suing Nationstar Mortgage for alleged breach of contract and fraud.

Justin Hatfield filed a lawsuit Oct. 11 in the Circuit Court of Raleigh County against Nationstar Mortgage LLC, citing negligence, fraud, breach of contract and unlawful debt collection.

Hatfield says he purchased his home in August 2007 and struggled to make payments throughout the life of the loan due to the volatile nature of his employment in the coal industry.

He says that in April, Bank of America refused to accept his loan payment and informed him that Nationstar was servicing the loan. According to the complaint, Hatfield immediately contacted Nationstar about his April payment, and Nationstar refused to accept his payment and did not accept payment until May.

Hatfield says that on May 25, he submitted a loan modification packet and continued to make payments. According to the complaint, on July 1 he was informed by Nationstar he was in default and that his loan modification had been denied because he was current on his loan and not at risk of default.

The complaint states that on Aug. 30, he was told he needed to pay $1,498.00 immediately and then call to set up a repayment plan. Hatfield says that upon calling, he was told that no repayment plan was available and he would be required to pay Nationstar's attorneys' fees in order to have his loan reinstated.

He says that on Sept. 5, Nationstar referred his home for foreclosure.

Hatfield is seeking an undisclosed amount of damages. He is being represented in the case by attorneys Ralph C. Young, Christopher B. Frost, Steven R. Broadwater, Jr. and Jed Nolan of Hamilton, Burgess, Young & Pollard.

Circuit Court of Raleigh County Case No: 13-C-829