CHARLESTON — A Charleston woman is suing Lakeview Loan Servicing alleging that it made misrepresentations in debt collection and caused her home to be foreclosed.
Loancare LLC was also named as a defendant in the suit.
Traci A. Phillips was laid off in 2018 and her loan servicer told her she qualified for an unemployment forbearance, which meant her loan payments would be reduced until she got another job, according to a complaint filed in Kanawha Circuit Court.
Phillips claims that despite the fact that she was entitled to the assistance because her loan was through the Federal Housing Administration (FHA), the defendants actually refused to consider the assistance request and her home went into foreclosure.
The plaintiff entered into the mortgage loan with PHH Mortgage in 2012 and the loan was insured by FHA, according to the suit. In 2018, when Phillips was laid off she requested payment assistance and she was approved for an unemployment forbearance for 12 months.
Phillips claims she and her husband made all of their forbearance payments as agreed, and in March 2019, she contacted the servicer to report that she was employed again and to inquire about her payments.
The plaintiff received a letter the following month telling her she was in arrears and she called back to dispute the arrearage, according to the suit. She was told that the arrearage would be cured through a loan modification, which she applied for, but she was repeatedly denied.
Phillips claims she was told to stop making payments, but she then received a foreclosure notice and her home was set for foreclosure last October.
The plaintiff alleges the defendants breached the contract with her and caused her many damages. She claims when she requested a statement of her account, they refused to provide one to her.
Phillips is seeking compensatory damages. She is represented by Bren J. Pomponio and Sarah K. Brown of Mountain State Justice in Charleston.
The case is assigned to Circuit Judge Joanna Tabit.
Kanawha Circuit Court Case number: 19-C-1096