Foreclosure filed against home of Louisville Metro Council member Dan Johnson
PennyMac Loan Services of Moorpark, Calif., wants a court-ordered auction to settle a mortgage debt. Louisville businessman Gus Goldsmith also has amended his lawsuit against the longtime councilman.
Tuesday, January 13th 2015, 12:15 PM EST
LOUISVILLE, Ky. (WDRB) – A south Louisville home owned by Metro Councilman Dan Johnson is the subject of a foreclosure action filed Dec. 16, according to Jefferson Circuit Court records.
PennyMac Loan Services of Moorpark, Calif., wants the court to sell the house at a public auction to settle a mortgage debt of $158,021, according to the suit.
UPDATE, 2 p.m.: Johnson said through a spokesman: "The house is up for sale. I expect it to be sold to settle the debt.”
It's the latest in a string of personal financial issues for Johnson, a longtime council member who was re-elected last November.
The foreclosure lawsuit was filed the same day that businessman and Action Loan owner Gus Goldsmith updated a lawsuit he filed against Johnson last August, alleging the councilman owes him $11,000 and wrote a bad check for $8,000.
Goldsmith's amended complaint includes a copy of a one-sentence promissory note apparently signed by Johnson saying he would pay Goldsmith $1,000 a month for 16 months, starting July 6, 2013.
In a response filed Dec. 18, Johnson “disputes the validity of the debt” and says Goldsmith has violated the federal Fair Debt Collection Practices Act.
Johnson hasn't yet filed a response to the complaint in the foreclosure lawsuit.
Documents filed with the foreclosure lawsuit show that on Feb. 28, 2013, Johnson and his wife signed a $163,700 mortgage with Platinum Mortgage Inc. of Madison, Ala. -- secured by the Kenwood Estates home the Johnsons have owned for 16 years.
The mortgage called for monthly payments of $960 for 20 years. The lawsuit says Johnson had fallen behind on payments as of April 1, 2014 but contains no further detail.
The home on Rollingwood Trail, which the Johnsons bought for $134,000 in 1998, is assessed at $178,080 for tax purposes.
Johnson has served on the Metro Council since it was formed in 2003 after the merger of the old City of Louisville and Jefferson County governments. He won re-election last November with 65 percent of the vote in District 21, which includes neighborhoods near Iroquois Park.
Weeks after Johnson's win, Metro government's
that found Johnson's office asked for the street where the councilman lives to be paved even though it didn't meet the threshold for such work.
Auditor Ingram Quick's review also showed that Johnson owed the city $855 for making personal calls on his Metro government-issued cell phone; he has since reimbursed the city. Johnson had requested the audit last summer amid the Goldsmith and another lawsuit involving a jeweler that has since been settled.
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