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WEST VIRGINIA RECORD

Monday, November 18, 2024

Woman sues mortgage lender, loan servicer for wrongful foreclosure

Federal Court
Foreclosure

WHEELING — A Wheeling woman, on behalf of herself and her husband, is suing Carrington Mortgage Services and Federal National Mortgage Association (FNMA) alleging wrongful foreclosure and illegal trustee sale of their home.

Linda Seals filed the lawsuit in Ohio Circuit Court before it was removed to federal court on March 3.

Linda Seals claims she and her husband, Wayne Seals, purchased and resided in a home in Wheeling. Wayne Seals is completely and totally disabled due to a progressive degenerative disease and now lives in a nursing facility.

The defendants, on Nov. 7, deprived Linda Seals and Wayne Seals of their ownership interest in their home by trustee sale purportedly under a Deed of Trust securing the loan held by FNMA, according to the suit.

Linda Seals claims Carrington entered the only bid for FNMA, but the defendants have not recorded any trustee deed transferring the title to the property as of Jan. 22.

"The sale occurred in the absence of adequate, meaningful prior notice of sale to the plaintiffs, and in the absence of any notice to the incompetent Wayne Seals, in violation of due process, state law and the notice requirements of the Deed of Trust," the complaint states.

Linda Seals claims the sale was unconstitutional and should be legally void.

Linda Seals is seeking compensatory damages and injunctive relief. She is represented by Gary M. Smith of Mountain State Justice in Morgantown.

Carrington removed the case to federal court, alleging that a diversity of citizenship exists between the plaintiffs and defendants.

Carrington argues that the plaintiffs' alleged damages would exceed the state court's $75,000 threshold, according to the notice of removal.

Carrington is represented by Daniel J. Konrad of Dinsmore & Shohl in Huntington.

The case is assigned to District Judge John Preston Bailey.

U.S. District Court for the Northern District of West Virginia. 

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