Homeowner Accuses Loan Servicer Of Payment Posting Screw-Ups, Improper Charges For Force-Placed Insurance, Erroneous Reports To Credit Bureaus

In Galveston, Texas, The Southeast Texas Record reports:

• After being threatened with foreclosure despite properly disputing a number of delinquencies on his mortgage, a Galveston County man has filed a $210,000 lawsuit against a Florida-based loan management company. Theordia L. McMahon accuses Bayview Loan Servicing LLC of failing to post payments and credits to his account in a timely and accurate manner after the defendant assumed the debt in early 2009, additionally claiming it refused audit for errors regarding premiums for force-placed windstorm insurance.

• The suit was filed March 18 in Galveston County District Court. According to the complaint, McMahon, a disabled veteran, obtained the home equity mortgage in 2007. CitiMortgage allegedly purchased the debt and assigned it to Bayview two years later. The suit states that CitiMortgage had informed the defendant that the plaintiff did not owe the premiums, but Bayview continued to demand payment.

• Bayview's subsequent actions resulted in the creation of erroneous reports of late payments to the credit bureaus, court papers assert. McMahon received a letter dated July 28, 2009, stating he failed to make multiple installment payments although there was no delinquency. The plaintiff responded to the notice with additional written disputes of delinquencies without success, the suit argues. Bayview ultimately filed an application for expedited foreclosure on Feb. 10.

• The suit alleges that McMahon "suffered significant mental distress due to the attempted wrongful foreclosure, libelous errors, and the credit denial."

Source: Man claims loan company improperly foreclosing on home.