CHARLESTON — An East Bank couple is suing PHH Mortgage Corporation for the wrongful foreclosure of their home.
Cascade Funding Mortgage Trust HB2 was also named as a defendant in the suit.
Randall Acord and Carol Acord claim they were induced into a reverse mortgage on Carol Acord's childhood home by Reverse Mortgage Solutions and the principal inducement by RMS was that the plaintiffs would not have to make payments on the reverse mortgage during their lifetime, according to a complaint filed in Kanawha Circuit Court.
The Acords claim RMS filed for bankruptcy and the servicing of their reverse mortgage was assigned to PHH.
"PHH demanded payments of taxes and homeowners insurance from the Acords," the complaint states. "Plaintiffs were confused about the demands for payment by a new servicer and in light of the representation tey would not have to make payments during their lifetime."
PHH then conducted a foreclosure sale of their property on May 6, 2022, in violation of the parties' agreement and law, according to the suit.
The Acords claim when they were induced into the reverse mortgage, the representations that they would never have to make payments was false, but they had relied on those misrepresentations and the misrepresentations by RMS were intentional and caused them damage.
"Plaintiffs and Defendants have a binding written enforceable agreement memorialized in the form of a promissory note and deed of trust, that constitute Plaintiffs' reverse mortgage," the complaint states. "The express terms of the reverse mortgage provide that the Secretary for HUD must approve the foreclosure. It is understood that foreclosure of the Plaintiffs' reverse mortgage is a matter of last resort."
The Acords claim that the secretary for HUD publicly announced that servicers should not conduct foreclosure sales of reverse mortgages where homeowners assistance funds, like the West Virginia Homeowner's Assistance Fund, exist to avoid foreclosure.
"Defendants breached the express terms of the parties' agreement — the Adjustable Rate Deed of Trust — by proceeding with foreclosure without the approval of the Secretary of HUD," the complaint states.
The Acords are seeking a court order to "unwind the foreclosure sale" and other relief. They are represented by Bren J. Pomponio of Mountain State Justice in Charleston.
The case is assigned to Circuit Judge Carrie Webster.
Kanawha Circuit Court case number: 23-C-178