CHARLESTON – A man is suing Nationstar Mortgage after he claims it engaged in fraud and illegal debt collection abuses.
Anthony D. Long purchased his home in December 2007 for $65,000 and it was his first real estate purchase and first experience with mortgages and financing, according to a complaint initially filed Dec. 10 in Nicholas Circuit Court and removed to federal court on Jan. 28.
Long claims because he was and is unsophisticated in such matters, he was reliant upon the honest and truthfulness of the lenders and services with which he dealt.
Long financed the purchase and related closing expenses through an eight percent interest purchase money loan from Flagstar Bank and the principal amount of the loan was $67,000.
On Oct. 12, 2009, Nationstar represented to Long that it had acquired his mortgage loan, which was a false and misleading representation, as the mortgage company had never been the owner of the mortgage loan, according to the suit. A different notice informed him that Nationstar had become the servicer of the loan.
Long claims Nationstar represented that his total debt owed on the mortgage was $66,382.99 and, at that time, his monthly payments were $800 per month.
In December 2009, Nationwide agreed that Long qualified for a loan modification to reduce his interest to two percent for five years, with a slow climb to a maximum of 5.125 percent for all loan periods after February 2018.
Long claims Nationstar did not simply reduce the interest rate on the outstanding principal balance under the original loan, and, instead, falsely, fraudulently, unconscionably and intentionally misrepresented to Long that he owed $76,615.48, an amount more than $10,000 higher than the total debt stated just two months previously.
The fees and charges imposed on Long many times exceeded in nature and/or amount that which was permissible under the contract and/or state law, according to the suit.