LOGAN – A Mallory couple is suing a lender, servicer and holder in an attempt to save their home.
Glen G. Gibson and Betty J. Gibson filed a complaint in Logan Circuit Court against Springleaf Mortgage Services of West Virginia Inc., formerly known as American General Home Equity Inc., Nationstar Mortgage LLC, doing business as Mr. Cooper; and U.S. Bank NA, alleging unconscionable inducement, contract defense of illegal loan, fraud and other counts.
According to the complaint, the plaintiffs are intellectually disabled residents living in on Mallory Hollow Road, Mallory. The suit states American General "flipped" the plaintiffs "into a worse, exploitative 15 percent home secured loan designed to end in foreclosure. At the end of the payment term, a surprise $22,000 payment came due, and the plaintiffs had no way to afford this large payment," the suit states.
The plaintiffs allege American General induced them into entering a non-precomputed loan based "on the suppression of the fact that the loan would contain an unaffordable balloon payment."
The Gibsons seek trial by jury, actual damages, civil penalties, court costs and all further relief the court grants. They are represented by attorneys Bren Pomponio and Daniel F. Hedges of Mountain State Justice Inc. in Charleston. The case has been assigned to Circuit Judge Eric H. O'Briant.
Logan Circuit Court case number 18-C-29-O