January 7, 2012

Bank owed more than $5,000 after selling collateral on loan

A bank claims it is owed more than $5,000 after a man failed to make payments on his loan of more than $50,000.

Frost Bank filed a lawsuit in Jefferson County District Court against Warner Belanger.

In its complaint, Frost Bank claims it lent Belanger $52,000 on May 27, 2005. To secure the loan and guarantee repayments, Belanger placed a lot in Galveston County as collateral, according to the complaint.

On June 11, 2010, Belanger and Frost Bank entered into a loan extension in which the maturity date of the loan would be extended for an additional five years. The monthly payment would be $580.73 per month, the suit states.

However, Belanger defaulted on the loan in May and has since failed to make any payments, the complaint says. In turn, the bank claims it sold the Galveston County property at a public auction to the highest bidder for $36,000.

After the sale, Belanger owes Frost Bank $5,026.53, plus interest, according to the complaint.

Frost Bank alleges breach of contract against Belanger.

In addition to the money it claims it is owed, Frost Bank seeks attorney’s fees, costs, post-judgment interest at 10 percent per annum and other relief the court deems just.

James E. Cuellar, D. Brent Wells, Jeffrey D. Stewart and Adam R. Swonke of Wells and Cuellar in Houston will be representing it.

Judge Bob Wortham, 58th District Court, has been assigned to the case.

Case No. A193-753