WHEELING - A man is suing over an allegedly illegal loan.
Harry J. Carenbauer filed a lawsuit Nov. 5 in the Ohio County Circuit Court against Beneficial West Virginia Inc., citing illegal loan in excess of fair market value of residential property, fraud and intentional misrepresentation, unconscionable inducement and failure to provide statement of account.
Carenbauer says that in 2006 Beneficial solicited him to obtain a second mortgage loan. He says that in reliance of Beneficial's representations on June 26, 2006, he executed a promissory note in the principal amount of $29,400.03.
According to the complaint, the loan was a second mortgage against Carenbauer's property, bringing the total debt to approximately $70,000. The complaint states that Beneficial cannot secure a residential mortgage loan in an amount that, when added to the aggregate total of outstanding balances of other loans on the property, exceeds the fair market value of the property on the date the latest loan is made.
Carenbauer says at the time the loan was made, the property had a true market value of $32,000.
Carenbauer is seeking damages including an amount in excess of the jurisdictional limit, punitive damages and litigation costs. He is being represented in the case by attorneys Jason E. Causey, James G. Bordas Jr. and Gail W. Kahle.
Circuit Court of Ohio County Civil Action No. 13-C-379