Homeowners accuse mortgage company of refusing house payment

By Michelle Massey, East Texas Bureau | Oct 6, 2010

SHERMAN-After their mortgage company refused to accept loan payments, two Fannin County residents have filed a lawsuit against the mortgage company in an effort to stop foreclosure.

Marvin McAllister and Sandra M. McAllister filed suit against BAC Home Loans Servicing, formerly known as Countrywide Home Loans Servicing on Sept. 2 in Fannin County District Court. The defendant removed the case to federal court in Sherman on Sept. 24.

The plaintiffs state they purchased the property located in Leonard in June 2007 with Worldwide Mortgage Corp. In September 2009, they received notification that their mortgage loan had been assigned to defendant BAC.

Because the McAllisters had already sent in their September payment, they called to confirm receipt. They state that BAC told them to stop payment on their August and September payments and to resend those directly to BAC.

In December, the homeowners state they received notification that their December payment would be $6,000. They contacted the defendant to inquire about the change, the suit states.

After numerous attempts to get help, BAC told the plaintiffs to continue to make their monthly payment until an investigation was conducted. According to the lawsuit, throughout December 2009 and March 2010, the McAllisters attempted to contact BAC to follow up on the changes in their mortgage account.

Although their attempts to contact the defendant were unsuccessful, the plaintiffs state they continued to make their regular mortgage payment.

In August, the defendant refused and returned the payments and posted the Leonard property for foreclosure.

The defendant is accused of breach of contract, anticipatory breach of contract, breach of common law tort of unreasonable collection efforts, breach of the Texas consumer credit code/Debt Collection Practices Act, negligent misrepresentation and gross negligence.

The homeowners are asking the court to protect the home from foreclosure, for an award of attorney's fees and costs, actual damages for loss of creditworthiness and the stigma of foreclosure, mental anguish, acute psychic trauma, loss of title to their home and the value of time lost in attempting to correct the BAC records.

The plaintiffs are represented by J.B. Peacock Jr., Cynthia K. Shanklin and David M. Vereeke of Gagnon, Peacock, Shanklin & Vereeke of Dallas.

U.S. District Judge Michael H. Schneider is assigned to the case.

Case No. 4:10cv00504

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