Couple sues after allegedly failing to receive an equity line of credit to build their new home

By Max Schramel | Dec 8, 2014

NEW ORLEANS – A couple allegedly failed to receive the necessary documents in time to construct their new house at 1919 Marengo Street.

Holly Scheib and Paul Wisneskey filed suit against Keith Dugas, Primary Residential Mortgage, Inc., and ABC Insurance Company in the Orleans Parish Civil District Court on September 16.

The defendant is a mortgage broker who worked with the plaintiffs in acquiring the residential property located at 1919 Marengo Street, New Orleans. The plaintiffs’ intended, after selling their former home at 561 Joseph Street, New Orleans, to use an equity line of credit to place a down payment on the property at 1919 Marengo Street. The defendant assisted the plaintiffs by filing paperwork with Iberia Bank, agreeing upon a purchase agreement for the residential property for approximately $587,000.

The plaintiffs aimed on using the equity as part of a large down payment to fund the substantial renovations needed, which amounted to between $200,000 to $250,000. The defendant advised the petitioners in creating an equity line of credit at Iberia Bank to properly accomplish the renovations.

On June 16, 2013, the plaintiffs handed over the necessary documents to the defendant to facilitate the equity line of credit. Before the renovations would begin, the defendant claimed once he turned over this paperwork to Iberia Bank it would only take 30 days before the bank created the equity. Following a week of the alleged closing, the plaintiffs began renovating and gutting the residential property.

A month after the alleged closing, on September 23, 2013, Wisneskey made repeated calls to the defendant inquiring if the equity line paperwork had been submitted. The defendant’s alleged failure to respond led to Wisneskey contacting PRM, the defendant’s place of employment, which replied that the defendant had purportedly failed to submit the necessary paperwork. On October 2, 2013, Iberia Bank forwarded a message to Wisneskey that the 90-day appraisal window had expired, leaving the plaintiffs unable to obtain the equity line of credit.

The defendant is accused of failing to send records regarding the equity line of credit to Iberia Bank in a timely fashion, respond in a timely manner to the plaintiffs, advise the plaintiffs of the 90-day appraisal period, advise the plaintiffs that the appraisal period could be effected by the renovation plans, and act in the plaintiffs’ best interest.

The plaintiffs are represented by Aaron Ahlquist of Herman, Herman, & Katz, LLC.

The case has been assigned to Div. H Pro Tempore Judge Lynn Luker.

Case no. 2014-09084.

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