Beaumont man claims mortgage company won't cooperate, seeks TRO

Kelly Holleran Apr. 5, 2010, 4:37am

A Beaumont man has filed suit against his loan and mortgage company, alleging they would not cooperate with him to lower his mortgage payments.

Lance Reed of 8760 Overhill Lane alleges his lender and mortgagor, defendants Litton Loan Servicing and Mortgage Electronic Registration Systems, forwarded him a repayment agreement on Oct. 12, 2007, which would have increased his payments by $300 a month.

Reed accepted the agreement because the defendants threatened to foreclose if he refused, according to the complaint filed March 23 in Jefferson County District Court.

Later, in January 2008, Reed contacted Litton to inform the company he was having problems paying the extra $300 per month expected of him and to ask if he had any other options, the suit states.

"Defendant advised Plaintiff that there was no other options but reminded Plaintiff that it was income tax season," the complaint says. "Plaintiff became offended with Defendants threats and sarcasms moreover fear in loosing (sic) his home."

Reed decided to contact a housing counseling agency, First Home Consulting, on Feb. 17, 2008, to discover what assistance could be offered to him, according to the complaint. However, Litton refused to talk to First Home Consulting and again threatened Reed with foreclosure, Reed claims.

Fearing that he would lose his home, Reed agreed to any repayment agreement Litton offered, the suit states.

On Feb. 29, 2008, Reed received an agreement that doubled his mortgage payment. Then, on May 24, 2008, Reed claims Litton sent him another agreement Reed considered fair and which Reed claims he had been sending to Litton.

However, Litton suspended all of Reed's payments and did not apply them to his loan, the complaint says.

"On or about May 23, 2009, Plaintiff did not understand his payment coupons that were being send (sic) from Litton Loan Services, do (sic) to the fact that his account balance did not reflect all payments that have been made by Plaintiff Lance Reed, which Plaintiff Requested that First Home Consultant inquired about this miss applying (sic) of funds," the suit states.

Now, Litton is attempting to foreclose on Reed's house, but Reed contends it did not negotiate with him in good faith to allow him to modify his mortgage agreement.

"Unless Defendant are immediately enjoined and restrained from completing the eviction on Plaintiff's residence, Plaintiff, Lance Reed, will suffer irreparable harm through the loss of title to his property, all equity in his property, and his credit worthiness via an eviction," the suit states.

Reed is seeking a temporary restraining order preventing Litton from completing the eviction process and evicting Reed from his home, is asking the court to waive the bond setting for the temporary restraining order and to issue a temporary injunction to prevent the defendant from completing the eviction process.

In addition, he is seeking a permanent injunction preventing the defendants from evicting Reed, to determine that the defendants improperly scheduled a sale date on Reed's residence and to issue other relief the court deems just.

Lance Reed will be appearing pro se.

The case has been assigned to Judge Gary Sanderson, 60th District Court.

Jefferson County District Court case number: B186-366.

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