Homeowners fire back by suing US Bank over wrongful foreclosure

Two residents of Jefferson County offered to pay the amount due on their deficient mortgage, but their lender refused to accept the money. Instead it filed for foreclosure and now Kyle and Paula Sterling are facing foreclosure on their home, the South Texas Record reported.

However, they did fire back in November by filing a lawsuit in Jefferson County District Court against their lender: Litton Loan Servicing, Ocwen Loan Servicing and US Bank National Association.

The Sterlings say their lender has attempted to foreclose on their home, although the couple has offered to pay off the amount due, and even made some payments, in order to settle their case.

The couple ran into financial trouble after Hurricane Ike struck the area in September 2008, and caused serious damages on their home, the complaint filed by the Sterlings says. Analyzing the damages, US Bank and Litton offered the couple a payment deferral plan, which allowed the Sterlings to start making mortgage payments later than the original contract stipulated.

But the payment schedule imposed by the bank is faulty, the Sterlings allege, so they have never been able to develop a proper schedule with the lender. As a result, their credit score got affected and now they are facing wrongful foreclosure, because US Bank has started the foreclosure proceedings.

The suit states the lenders did not honor the agreement they had with the Sterlings and  now they claim the couple is in default, while they did their best to adapt with the terms.

The lawsuit filed by the Sterlings alleges violation of the Texas Deceptive Practices-Consumer Protection Act and they seek actual, statutory treble damages,and attorney fees, costs and pre- and post-judgment interest.