Homeowners sue bank for wrongful foreclosure

Despite their offer to pay any money due on their deficient mortgage, two Jefferson County residents claim they face foreclosure on their property.

Kyle and Paula Sterling filed a lawsuit Nov. 16 in Jefferson County District Court against Litton Loan Servicing, U.S. Bank National Association and Ocwen Loan Servicing.

In their complaint, the Sterlings allege the defendants are attempting to foreclose on their property, even though the couple has offered, and even made some payments, in an attempt to settle their late mortgage payments.

The Sterlings encountered financial difficulties after Hurricane Ike struck in September 2008 and caused damage to their home, according to the complaint. Because of the damages, Litton and U.S. Bank offered the Sterlings a payment deferral plan, allowing them to make mortgage payments at a later date, the suit states.

However, the Sterlings allege the payment schedule under the plan is faulty, and they have never been able to develop a correct one. Because of this, the Sterlings' credit ratings have been affected, which has had an adverse impact on Kyle Sterling's business, the complaint says.

The Sterlings claim they also now wrongly face foreclosure because of actions that U.S. Bank took against them.

"Defendants have refused to honor the agreement and Defendants now claim that Plaintiffs are in default, when they have, in fact, offered and attempted to fully comply with the terms of their agreement," the suit states.

The Sterlings allege breach of contract and violation of the Texas Deceptive Practices-Consumer Protection Act against the defendants, the complaint says.

In their complaint, the Sterlings seek actual, consequential, incidental, mental anguish and statutory treble damages, plus attorneys' fees, costs, pre- and post-judgment interest and other relief the court deems just.

Wyatt D. Snider and Russell W. Heald of Snider Law Firm in Beaumont will be representing them.

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

Case No. A191-361