Canton alderman sued, Buncombe County attornies implicated, in lawsuit over foreclosure

Jason Sandford

Jason Sandford is a reporter, writer, blogger and photographer interested in all things Asheville.

1

Interesting story from The Mountaineer newspaper:

Canton alderman Eric Dills, his wife, Monica, and three attorneys are being sued for what a Canton couple claims was a fraudulent real estate deal.  Joseph and Carol Hannah recently filed a complaint in Haywood County Superior Court accusing Dills of selling a home that, unbeknownst to them, had been offered as collateral for a loan.  Despite paying Dills off on money owed for the home, the Hannahs claim he defaulted on loan payments, which recently forced the home into foreclosure. On March 10, 2000, Dills sold the Hannahs a home on about a half-acre for $85,000. Of that, $8,500 was paid as a down payment, the remaining $76,500 financed. Richard Maita, through his Buncombe County law firm, represented both parties in the closing. 

The property was sold free and clear, although the Hannah’s claim the mortgage had been offered as collateral to secure a $63,750 equity line of credit through Champion Credit Union. Maita prepared the revolving credit deed of trust on July 12, 1999, eight months prior to the closing. 

The Hannahs later refinanced the home twice through two separate attorneys, Jonathan McElroy, of Buncombe County, and Lawrence J. D’Amelio, III of Guilford County. At no time was the revolving credit deed disclosed by any of the three attorneys involved in the sale or refinancing, or included on any settlement statements, according to the couples’ claim. 

Furthermore, the couple claims attorneys charged them for title searches that were never performed and title insurance that was never purchased.