The plaintiffs say the dispute begins with a Confidential Settlement and Release Agreement signed on March 1, 2021 with US Bank as trustee, Rushmore, and related entities. They allege they completed a Trial Payment Plan, received a permanent loan modification, and saw the earlier foreclosure dismissed – with the defendants, they say, retaining the right to foreclose only for future defaults.
What followed, the filing claims, was the opposite of a clean slate. The Middletons allege that pre-2021 corporate advances were re-added, extinguished fees reappeared, escrow was miscalculated, and payments were not credited properly. They point to a payment history showing at least 95 separate “Lender Paid Expense Adjustments.” They also reference a December 4, 2023 written response to the Consumer Financial Protection Bureau, which the filing quotes as stating, “The above referenced fees were not incorporated into the 2021 loan modification agreement.”
When servicing moved from Rushmore to Nationstar d/b/a Rushmore Servicing in October 2023, the filing alleges, a $4,376 “corporate advance balance” dated December 27, 2019 was added, along with other unexplained fees and higher monthly payments. The plaintiffs also say their on-time payments from 2021 through 2023 were not reported to the credit bureaus, costing them refinance opportunities.
On March 10, 2025, Wilmington Savings Fund Society filed a foreclosure action in Charleston County asserting $203,343.36 owed, including corporate advances, legal fees, and inspection fees. The plaintiffs say that figure is built on misapplied payments and fees the 2021 settlement was supposed to resolve.
They are asking a federal judge to halt the foreclosure, order a full accounting going back to 2017, void the disputed fees, correct the credit reporting, and award damages and attorneys’ fees. A jury trial has been demanded.