Ocwen Loan Servicing is being sued for allegedly not telling mortgage borrowers about a balloon payment they would owe at the end of the term of the loan. Shutterstock
LOGAN – Two Logan County residents are suing mortgage company Ditech Financial over alleged mishandling of payments.
Plaintiffs Rebecca J. Tomblin and Joann Meadows filed a lawsuit on Jan. 11 in Logan Circuit Court against Ditech Financial, d/b/a Ditech as successor-in-interest to Green Tree Servicing LLC, over claims that the defendant misappropriated their loan payments, breached several contracts, and violated the West Virginia Consumer Credit and Protection Act (WVCCPA).
The plaintiffs say that on June 23, 2000, they entered into a sales contract with Mid-State Trust IV and Jim Walter Homes for a purchase of a home in the amount of $60,000 at an 11 percent interest rate, with a monthly payment of $571.30 over 30 years, totaling $205,668 over the term of the contract. The plaintiffs allegedly made regular payments of $571.30 starting on or about Oct. 5, 2000. From Dec. 5, 2005, to March 13, 2012, the plaintiffs say, they received notices that their account was delinquent despite their claim that they were making regular payments.
During that time, the suit says, their loan agreement transferred to Green Tree Servicing. The plaintiffs claim that they continued to make payments to Green Tree but during the period between Jan. 1, 2012, and Aug. 31, 2015, approximately 30 payments made by the plaintiffs were allegedly placed in an unapplied funds account rather than on their mortgage account. This caused their accounts to be delinquent, they claim.
The defendant then notified the plaintiffs of the company's intent to repossess the property, the suit says. Throughout 2015, the plaintiffs allege, their payments were constantly put in the unapplied funds account rather than the mortgage account, causing their account to be late and under threat of foreclosure. Plaintiffs claim that they have made several good-faith attempts to solve the misapplication of their funds to no avail.
The plaintiffs are suing for appropriate equitable relief, actual and punitive damages, cancellation of debt, statutory damages for each violations of the WVCCPA, an order to the defendant to retract any negative information regarding the plaintiffs reported to credit agencies, attorney costs and fees, and other relief deemed just by the court. They are seeking a jury trial and are represented by Anthony J. Majestro and J.C. Powell of Powell & Majestro PLLC in Charleston.
Logan Circuit Court Case number 16-C-4