Man fights foreclosure of Crystal Beach property

A Jefferson County man claims his mortgage company wrongly foreclosed on his property, despite the fact that he forwarded a check for more than $200,000 to the lender.

James G. Cobb filed a lawsuit Aug. 18 in Jefferson County District Court against Ocwen Loan Servicing; Mackie, Wolf and Zientz; and Alison Spencer.

In his complaint, Cobb alleges his property at 1966 Ave. J in Crystal Beach was destroyed during Hurricane Ike on Sept. 13, 2008.

After the devastation caused to his property, Cobb submitted claims under various insurance policies and was rewarded $31,700 from Texas Windstorm Insurance Association and $250,000 from Allstate, according to the complaint.

In turn, Cobb forwarded the checks to his mortgage company, Ocwen Loan Servicing, with instructions that the company apply the money toward future payments, the suit states. In addition, Cobb promised the lender that he would surrender the remaining balance of his loan after he was awarded additional money from another insurance company, the complaint says.

Ocwen agreed to wait to recover the balance, but instead began foreclosure proceedings on Cobb's property, he claims.

Mackie, Wolf and Zientz is named as a defendant because it agreed to conduct the foreclosure, even though Cobb provided direct communication against the action, according to the complaint.

On June 1, 2010, Spencer foreclosed and sold the property for $348,462, the suit states.

Cobb alleges breach of contract, common law fraud, statutory fraud, defamation, negligent and unfair debt collection.

In his complaint, Cobb is seeking an unspecified judgment and compensatory and exemplary damages, plus other relief the court deems just.

Stuart C. Yoes of The Yoes Law Firm in Beaumont will be representing him.

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

Case No. E190-695