ST. LOUIS — A federal judge has ruled in favor of lenders in a foreclosure dispute involving a St. Charles property. 

U.S. District Judge Audrey G. Fleissig of the Eastern District of Missouri on June 12 granted summary judgment to Wells Fargo Home Mortgage and Deutsche Bank National Trust Co. in a case brought by property owner Lenore Victorian related to a home she owned at 471 Olde Court Road in St. Charles.

Victorian had originally purchased the home in 2006 by executing two adjustable rate loans with a first mortgage loan of $408,862 and a second mortgage loan of $102,216, according to Fleissig's ruling.

Her loans were later modified to reduce her monthly payment. In 2010, her personal liability for any future judgment on her mortgages in the event of foreclosure was discharged as part of a Chapter 7 bankruptcy proceeding, the ruling states.

In 2012, Victorian sought modification of her first mortgage under the federal Home Affordable Modification Program (HAMP). A dispute later arose over paperwork Victorian had filed for the program and whether Wells Fargo knew about the second mortgage during its HAMP review process.

Wells Fargo determined Victorian did not qualify for relief under HAMP, in part because a subordination agreement for the second mortgage had not been secured.

The property eventually was sold to Deutsche Bank at a foreclosure sale in December 2014 for $450,000.

Victorian sued in state court in February 2015, and the defendants subsequently removed the case to federal court. 

The remaining claims that were being litigated were breach of contract, including breach of implied covenant of good faith and fair dealing against Wells Fargo for its alleged failure to offer Victorian a permanent loan modification; fraudulent misrepresentation against Wells Fargo for allegedly falsely representing that Victorian would receive a permanent loan modification and for allegedly falsely representing in phone calls that the only impediment to getting a permanent modification under HAMP was the other liens on Victorian's home; violation of the Missouri Merchandising Practices Act; and a request for declaratory judgment declaring Victorian is the “fee simple owner” of the property and that the foreclosure sale of the property is void.

On all those remaining claims, Fleissig found in favor of defendants, granting summary judgment.

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