Beaumont residents claim their home was foreclosed without warning

Kelly Holleran Nov. 3, 2010, 4:31pm

Two Beaumont residents have filed suit against their mortgage company, alleging it suddenly and without warning foreclosed on their property.

Herbert Hoover Lee and Michelle Lee claim they only became aware of the foreclosure on their home after defendant CitiMortgage sold it on Oct. 5.

Before the foreclosure, the Lees had not received a notice of acceleration or a notice of foreclosure sale, in violation of the Texas Property Code, according to the complaint filed Oct. 20 in Jefferson County District Court.

"Plaintiffs are now in desperate straits," the suit states. "Having been notified that the foreclosure upon their homestead has been accomplished, they expect an action against them for Forcible Entry and Detainer at any time."

Although they did not receive notices before the foreclosure on their home, the Lees realized that they were behind on their payments, the complaint says.

They had believed, however, that they were in the process of sorting things out through CitiMortgage's online program called "Hope Now," a program designed to help homeowners in the Lees' position.

In their lawsuit, the Lees allege breach of contract and violation of deceptive trade practices against CitiMortgage.

In addition to CitiMortgage, the Lees name Federal National Mortgage Association as a defendant, saying it now holds the title to their Beaumont home, but has no claim to the home because the Lees still own it.

In their complaint, the Lees seek an order preventing the defendants from divesting them of their title and other relief the court deems just.

John Pat Parsons and Barrett Lindsay of the Lindsay Law Firm in Beaumont will be representing them.

The case has been assigned to Judge Donald Floyd, 172nd District Court.

Jefferson County District Court case number: E188-636

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