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SettlePou Secures Summary Judgment for Mortgage Lender


SettlePou recently obtained summary judgment on behalf of its residential mortgage servicing client after the Court found that the Plaintiffs’ claims were barred by the statute of frauds.  In Marie M. Victor, et al. v. First Guaranty Mortgage Corporation, Case No. 4:18-cv-01237 (S.D. Tex. Apr. 17, 2019), the Plaintiffs sued FGMC, the lender attempting to foreclose on their mortgage loan, claiming that FGMC’s servicer failed to respond to their request for a loan modification prior to initiating foreclosure proceedings in violation of an alleged agreement between the parties to defer foreclosure proceedings pending the loan modification review.  Based on this allegation, the Plaintiffs asserted causes of action for breach of contract, fraud, promissory estoppel, violation of RESPA, breach of the duty of cooperation, and negligent misrepresentation.

FGMC filed a motion for summary judgment, arguing that the alleged agreement to delay foreclosure was barred by the statute of frauds and, even if it weren’t, the summary judgment evidence established that FGMC complied with the alleged agreement by notifying the Plaintiffs that the request for a loan modification had been denied prior to proceeding with foreclosure.  The Court agreed with FGMC and entered a Final Judgment dismissing all of the Plaintiffs’ claims.

For more information or if you have any questions, please contact Lauren Beverly at lbeverly@settlepou.com.