Credit Union seeks foreclosure after man defaulted on home equity loan

Kelly Holleran May 6, 2013, 7:13pm

A credit union has filed a lawsuit against the Beaumont man who it claims defaulted on his home equity loan. 

MobilOil Federal Credit Union claims it lent defendant Bob Hardin $43,000 in a home equity loan. Hardin agreed to repay the loan and to make interest payments of 7.5 percent, according to the complaint filed April 29 in Jefferson County District Court.

However, since then, Hardin has defaulted on his loan payments, the suit states.

“After allowing all just credits, payments and rebates, as of March 12, 2013, the amount of principal due and owing to plaintiff was $34,889.70,” the complaint says. “Additional interest, late charges, taxes, insurance and attorney fees are also owed under the loan agreement.”

Although MobilOil would typically pursue an expedited foreclosure against Hardin, it claims it is forced to seek a regular judicial foreclosure because of unique circumstances.

Unbeknownst to MobilOil, another person, co-defendant Lorenzo Paul, also owns an interest in the property on which Hardin secured a home equity loan. In turn, MobilOil is forced to include Paul in its lawsuit.

Mobil Oil claims it did not learn about Paul’s ownership interest in the property until after it had already issued the home equity loan to Hardin.

“At the time the loan was made Plaintiff relied upon a title commitment issued by Jefferson County Title, and a Mortgagee policy of title insurance issued by Lawyers Title Insurance Company through Jefferson County Title which reflect Defendant Hardin as the sole fee simple owner of the property,” the complaint says.

In its complaint, MobilOil seeks a judgment confirming its home equity lien on the property, plus attorneys’ fees, costs, establishment and foreclosure of its lien and other relief the court deems just.

Glenn H. Steele Jr. and Craig J. Tahaney II of McPherson, Hughes, Bradley, Wimberley, Steele and Chatelain in Port Arthur will be representing it.

The case has been assigned to Judge Bob Wortham, 58th District Court.

Case No. A194-292

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