Beaumont couple says foreclosure due to mortgage company error

Kelly Holleran Mar. 23, 2011, 10:00am

A Beaumont couple has filed suit against the mortgage holder they claim destroyed their credit ratings and forced them to face foreclosure.

Vertis Malvo Jr. and Fran Malvo claim they obtained a home equity mortgage in 2006, a debt that was later purchased by defendant Deutsche Bank National Trust Co. in early 2009.

In turn, Deutsche designated defendant Select Portfolio Servicing as a loan servicing agent, according to the complaint filed March 16 in Jefferson County District Court.

Since then, Deutsche failed to post payments and credits to the Malvos' accounts and refused to credit the account for errors, the suit states.

"Select Portfolio Servicing had informed Defendant that Plaintiff did not owe the premiums, but Select Portfolio Servicing continued to demand payment, applied monthly mortgage payments to escrow, or simply held the funds in a 'suspense account' which then created the erroneous reports of late payments to the credit bureaus," the complaint says. "These erroneous reports caused Plaintiff to lose an extension of credit."

On Jan. 24, Select Portfolio Servicing filed an application for foreclosure on the Malvos' property, wrongly alleging the couple failed to make multiple installment payments, the Malvos claim.

"Plaintiffs have suffered significant mental distress due to the attempted wrongful foreclosure, libelous errors, and the credit denial," the suit states.

The Malvos allege action in trespass to try title against the defendants.

They seek more than $100,000 in actual damages, plus attorney's fees, court costs, pre- and post-judgment interest and other relief the court deems just. They also are asking the court to determine the title to the property.

The Malvos will be represented by Lu Ann Trevino of The Trevino Law Firm in Houston.

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

Case No. B189-600

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