CHARLESTON — A woman is suing Greenlight Financial Services alleging her home is being wrongly foreclosed on.
U.S. Bank National Association and Specialized Loan Servicing were also named as defendants in the suit.
The home that Charlene Chandler lived in in 2004 was flooded and she sought to purchase a new home, which she found in Cross Lanes and purchased the townhome on March 30, 2004, for $95,500, according to a complaint filed in Kanawha Circuit Court and removed to U.S. District Court for the Southern District of West Virginia on March 25.
Chandler claims Kanawha County bought out Chandler’s flooded property through a FEMA grant and demolished it and Chandler used those proceeds to make a substantial downpayment on the purchase of her new home.
The plaintiff financed the remaining balance of the purchase price of her new home with a mortgage loan with America’s Wholesale Lender, a subdivision of Countrywide Home Loans, for $60,500 at an interest rate of 5.5% for 30 years. Six months later Countrywide solicited Chandler for a second mortgaged based on her equity int he home and the second mortgage was in the amount of $16,200, according to the suit.
Chandler claims the defendants in 2005 reached out to her about debt consolidation and Greenlight originated a home-secured loan in the amount go $46,000 at an interest rate of 13.9% for a term of 25 years and the proceeds of the loan satisfied plaintiff’s second mortgage with Countrywide as well as unsecured credit card debt.
Chandler claims she was not able to freely ask questions and was unable to understand to terms or import of the transaction. SLS began servicing the loan in 2006.
When the plaintiff filed for Chapter 7 bankruptcy in 2008, she was up to date on her payments on the loan, according to the suit. SLS never sent Chandler any monthly statements or demands for payment on the loan after her bankruptcy filing, according to the suit. More than 10 years later, SLS issued a notice to cure default in July 2019.
Chandler claims SLS is now pursuing foreclosure of its lien and she now owes $39,000 on the loan.
Chandler is seeking compensatory damages and for SLS to be estopped from pursuing foreclosure. She is represented by Sarah K. Brown and Bren J. Pomponio of Mountain State Justice.
The defendants claim the case should be in federal court because the parties are citizens of different states and the amount in controversy exceeds $75,000.
The defendants are represented by Randall L. Saunders and Ashley N. Barebo of Nelson Mullins Riley & Scarborough in Huntington.
U.S. District Court for the Southern District of West Virginia case number: 2:20-cv-00217