Porter County couple claim they’re being foreclosed on, despite never missing a payment

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Updated: March 25, 2012 8:15AM

Two Valparaiso homeowners are suing their mortgage company in federal court, claiming it is trying to foreclose on their home despite the fact they have never missed a payment.

According to the lawsuit, which was filed a year ago in the U.S. District Court in Northern Illinois but transferred Thursday to the U.S. District Court in Hammond, Christopher and Holly Kozlowski signed an agreement in December 2009 with their mortgage company, PHH Mortgage Services, to lower the monthly payments they were making on their home in the 100 block of West Porter County Road 550N.

An attorney for PHH could not be reached for comment.

The couple continued to make these payments until they got a notice from PHH in November 2010 claiming they were delinquent on their mortgage and that the company planned on foreclosing, the lawsuit says.

When the couple asked why, PHH said that they had never sent back signed documents of their modification.

However, they sent a copy of a UPS receipt they say was for the package and that was signed by a PHH employee.

The lawsuit says they were told at the end of 2010 that the foreclosure was a mistake, only to be told a month later that they were indeed being foreclosed on.

The company now claims they owe more than $42,000 on their mortgage, according to the lawsuit.

The Kozlowskis are asking that PHH be forced to follow the modified agreement and that it stop foreclosure action on their house.