Metro Councilman Dan Johnson is facing foreclosure for not paying the mortgage on his house.
Defaulted on Loan
Johnson is seeking to have the property sold so that he can pay the $158,021 that PennyMac Loan Services LLC of Moorpark, Calif. claims he owes for defaulting on the loan. When a borrower defaults on a loan, the lender is able to foreclose on the home.
The mortgage lender filed the foreclosure action in December. Johnson put the house up for sale a month ago and has lived in another house for more than a year. The Johnsons have owned the property since 1998. “We’re paying for too many houses, I guess, and we’re selling that house right now,” said Johnson, D-21st District. Johnson went on to say they were unable to make the payments on the house he is being foreclosed on and that the house is worth more than the amount the lender seeks.
The mortgage lender is also asking for 3.6 percent interest from April, as well as attorney fees and court costs.
According to court documents, the Johnsons borrowed $163,700 in February 2013 from Platinum Mortgage in Madison, Ala.
Other Financial Situations
This is just the latest in financial issues Johnson faces. The councilman is popular in his district, having easily been re-elected multiple times. He allegedly wrote bad checks to Metro Government for using his city cell phone for personal use. He’s since repaid.
Last year two local businessmen filed lawsuits for unpaid debts. One lawsuit was settled, but businessman Gus Goldsmith claims Johnson owes him $11,000. Johnson filed a counterclaim, arguing Goldsmith violated the federal Fair Debt Collection Practices Act.
Source: The Courier Journal, Councilman Dan Johnson faces house foreclosure, January 13, 2015