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The lawsuit traces the trouble back to the pandemic. In 2020, James entered a 16‑month COVID-19 forbearance, which he says was granted because of financial hardship and his need to support family members. As that relief period ended, he turned to the state’s homeowner assistance program.
According to the filing, in March 2022 James received a $32,000 grant from the Georgia Department of Community Affairs: about $27,000 to pay off his then‑past‑due balance and the rest to cover three months of upcoming payments. The grant was paid to Nationstar/Mr. Cooper. A later section of the lawsuit cites Georgia Department of Community Affairs records reflecting a payment of $32,321.41 made on March 8, 2023 to Nationstar Mortgage that does business as Mr. Cooper.
Despite that support, James says he was surprised to get a letter from Servbank dated May 2, 2023, stating his loan was delinquent. He points out that county records referenced in the lawsuit show the loan was not assigned to Allied First Bank dba Servbank until October 2023, and he believed the state grant money should have covered his mortgage through July 2023. He alleges that Servbank continued to send delinquency notices from July through September 2023.
Trying to avoid foreclosure, James says he submitted a mortgage assistance application to Servbank in September 2023 to begin the FHA loss mitigation process. Servbank allegedly responded that it had not received the application. After the loan was formally assigned toward the end of October 2023, he claims he sent a fresh application in December 2023.
On December 14, 2023, Servbank wrote to James saying it could not consider that application because it had arrived less than 30 days before the scheduled foreclosure date, according to the lawsuit. The foreclosure went ahead on January 2, 2024.
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