A Liberty County resident filed a lawsuit against the business which both sold her a home in 2013 and subsequently foreclosed on it the following year, citing infringement of anti-predatory lending legislation.
Selena Hernandez filed a complaint against Precab Inc. in the Beaumont Division of the Eastern District of Texas on July 13, claiming violation of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Texas Secure and Fair Enforcement for Mortgage Licensing Act of 2008 in January 2014
According to the suit, Hernandez, who was unemployed at the time, purchased real property from the defendant on or about May 30, 2013, for a purchase price of $93,500. The suit states that the seller also acted as the financer for the transaction and that the plaintiff made a 10 percent down payment of $9,350.
The suit states that the terms of financing were 10 years at 12 percent interest. Documents filed indicate that the defendant failed to use a residential mortgage loan originator as required by Texas law and neglected to follow the Dodd-Frank Act, which requires lenders to verify that borrowers have the ability to repay the loan.
The complaint states that Precab exercised its Deed of Trust on Jan. 7, 2014, causing foreclosure of the property and sale at auction; repurchased the property to become owner once again, and has failed to engage in communication in an effort to avoid litigation.
Hernandez seeks compensation for damages, pre- and post-judgment interest, attorney’s fees, expenses, and costs. The plaintiff is represented by Ricardo Guerra of the Law Offices of Rick Guerra in Spring.
Beaumont Division of the Eastern District of Texas Case 1:15-cv-00275.