Mason County woman sues mortgage company, alleging breach of contract

By Mark Trammell | Sep 10, 2015

POINT PLEASANT – A Mason County woman is suing a home equity firm and mortgage company, alleging breach of contract.

Molly J. Coleman of Southside filed a lawsuit Aug. 24 in Mason Circuit Court against Springleaf Home Equity Inc, Nationstar Mortgage Holdings Inc. and Shane Michael Gill, alleging breach of duty of good faith and fair dealing, breach of fiduciary duty and breach of contract.

According to the complaint, Coleman and her late husband Boyd entered into an agreement with Springleaf culminating in signing a credit line deed of trust to Steve Thompson, trustee, for the benefit of Springleaf, with property in Frazier's Bottom as the subject. Shortly thereafter, Boyd passed away, and Coleman entered into an agreement with defendant Gill, in which he then agreed to take over the payments to Springleaf, property taxes and to insure said premises, the suit says. After said payments were completed in full, Coleman allegedly agreed to deed the subject property to Gill.

The suit says Coleman was then contacted by Springleaf to sign documents to this end. However, they allegedly did not mention that said documents would turn over the property and ownership to Gill without having completed said payments. Instead, she signed an agreement which, the suit says, stated if Gill could not make said payments, the debt would come back to her, despite Gill having agreed to take over said payments and Springleaf having agreed to said terms.

The lawsuit states Springleaf then sold the terms of said agreement to Nationstar Mortgage, who subsequently came after Coleman when Gill failed to make the payments as required by him, and threatened to foreclose on said property if these debts were not paid.

As per her agreement with Springleaf, however, Coleman no longer has any interest in said property, and thus, any payments would only stand to benefit Gill, who does, the suit says. As such, she alleges this is in direct violation of her agreement with Springleaf, and thus, she should not be held liable for said debt.

Coleman seeks a trial by jury, an admission the contract was breached, a suspension of any further action on foreclosing said property, either release from owing any debt or a reversal of ownership in said property so that it reverts back to her, after which she will take up payments accordingly, actual and punitive damages, court costs and attorney fees, and any other such relief as determined by the court, as well as prevention of any of the defendants from contacting her in any way until said matter is resolved.

She is represented by attorney Tanya Hunt Handley of Handley Law Office in Point Pleasant. The case has been assigned to Circuit Judge Thomas C. Evans III.

Mason Circuit Court case number 15-C-101.

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