California Couple Loses Home Due to Blatant Bookkeeping Error by Specialized Loan Servicing, LLC

Michael L. Russell and Renita Y. Russell purchased a Palmdale home in 2004 and maintained the mortgage for a decade without incident. When SLS assumed servicing of the loan in 2014, the company made a catastrophic bookkeeping error following a 2015 loan modification, erroneously adding over $250,000 to the couple's loan balance. By 2018, SLS claimed they were in default by $69,332, escalating to a claimed indebtedness of $946,239 by early 2019.

The couple attempted multiple avenues to resolve the discrepancy, including filing for Chapter 13 bankruptcy protection and making consistent mortgage payments while seeking an accurate accounting from SLS through legal counsel. All efforts proved unsuccessful. Facing an impossible loan balance they did not owe, the Russells were forced to conduct a short sale of their home in April 2022 to avoid foreclosure. A year later, SLS acknowledged the error but refused to accept responsibility.

The lawsuit was filed in California State Court and names SLS as defendant, with Deutsche Bank National Trust Company identified as the entity on whose behalf SLS was acting. The Russells' legal claims include breach of contract, negligence, negligent misrepresentation, intentional misrepresentation, unfair business practices, unfair debt collection, and theft. They seek restitution of all excess payments made, compensatory damages, and punitive damages. The couple lost approximately $300,000 in home equity and suffered severe emotional distress, which contributed to the breakdown of their marriage. The plaintiffs are represented by the Law Office of Lorden and Reed.

This is a curated brief from the PlaintiffWire news desk. Read the original report at LawsuitPressRelease.