Carter-Washington v. Wilmington Trust, National Association et al

On March 14, 2025, plaintiff Angela Carter-Washington filed a lawsuit in the United States against Wilmington Trust and other financial institutions. The dispute centered on the servicing and foreclosure proceedings of her residential mortgage. Carter-Washington alleged that the defendants engaged in dual tracking, failed to properly credit her payments, and initiated a foreclosure sale despite pending loss mitigation applications. She claimed violations of federal mortgage servicing regulations and state consumer protection laws. The complaint sought damages and injunctive relief to halt the foreclosure and correct the accounting errors. The case was filed in federal district court, raising questions about proper assignment of the deed of trust and standing to foreclose.

As of the filing date in March 2025, the case remains in active litigation with motions pending before the court. No final judgment or settlement has been recorded.

The central dispute was whether the defendants violated the Real Estate Settlement Procedures Act (RESPA) by failing to properly evaluate the plaintiff for loss mitigation options before proceeding with foreclosure. Additional contested issues included the validity of the note assignment chain, improper fee assessments, and alleged breaches of the mortgage contract terms.

The case highlights persistent concerns about mortgage servicing practices in the United States, particularly for borrowers seeking loan modifications. It contributes to the ongoing public and regulatory scrutiny of foreclosure processes and the accountability of large financial institutions in handling consumer obligations under federal and state laws.