Catherine Ojiambo v. Freedom Mortgage Corporation

CourtDistrict Court, E.D. Texas
DecidedMarch 3, 2026
Docket4:25-cv-01295
StatusUnknown

This text of Catherine Ojiambo v. Freedom Mortgage Corporation (Catherine Ojiambo v. Freedom Mortgage Corporation) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Catherine Ojiambo v. Freedom Mortgage Corporation, (E.D. Tex. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS SHERMAN DIVISION

CATHERINE OJIAMBO § § v. § CIVIL NO. 4:25-CV-01295-SDJ-BD § FREEDOM MORTGAGE § CORPORATION § §

MEMORANDUM OPINION AND ORDER

Pro se Plaintiff Catherine Ojiambo filed an Emergency Motion for Temporary Restraining Order (“TRO”), seeking to enjoin a foreclosure sale scheduled to occur the afternoon of March 3, 2026. (Dkt. #63). After considering the TRO application, Defendant’s response, (Dkt. #68), Plaintiff’s reply, (Dkt. #69), the record, and the applicable law, the Court concludes that Plaintiff is not entitled to the extraordinary remedy of a TRO. I. BACKGROUND In November of last year, Plaintiff sued Defendant Freedom Mortgage Corporation, the servicer of the mortgage on her property, (Dkt. #1), and, concurrently with her original complaint, moved ex parte for a TRO, (Dkt. #2). That motion asserted that Defendant had scheduled a foreclosure sale of her home in six days. Id. The Court denied the motion because Plaintiff had failed to satisfy the notice requirement of Federal Rule of Civil Procedure 65(b)(1)(B) and sought relief under a federal law that does not authorize injunctive relief. (Dkt. #11). On the day the foreclosure sale had been scheduled to occur, Plaintiff notified the court that Defendant had cancelled the sale the day before. (Dkt. #13). The next day, Plaintiff amended her Complaint. (Dkt. #18). The operative

Amended Complaint alleges violations of the Real Estate Settlement Procedures Act (“RESPA”) and its implementing regulations and state-law claims, including one for breach of contract. Id. Plaintiff alleges that, after she became unemployed, she contacted Defendant and completed a hardship and loss-mitigation application. Id. at 2. She further alleges that, “[o]n the same date, [she] sent Defendant a written message confirming that she wished to be considered only for a loan modification and

not for a refinance or any option creating a junior lien.” Id. Plaintiff alleges that, the next month, Defendant issued a “decision letter” and proposed modification agreement that offered one loss-mitigation option and indicated that several others were “unevaluated.” Id.; see (Dkt. #70-1) (decision letter listing various “Program[s]” as “Un-Evaluated,” “Non-Approved,” “Approved,” and “Eligible”). Plaintiff alleges that “Defendant failed to complete the FHA waterfall because it left multiple options unevaluated and proceeded directly to a single

modification offer.” (Dkt. #18 at 2). Plaintiff alleges that she rejected that offer and insisted that Defendant evaluate other loss-mitigation options. Id. The next month, Defendant’s online portal indicated that Plaintiff’s application had been rejected for failure to provide documents, then switched to indicating that the loss-mitigation review remained ongoing, and then finally switched back. Id. at 3. Shortly thereafter, Defendant noticed a foreclosure sale and Plaintiff submitted a notice of error objecting that Defendant’s loss-mitigation review was incomplete. Id. She states that Defendant received the notice of error but never corrected the error or conducted a reasonable

investigation. Id. Plaintiff alleges that Defendant then flip-flopped again, indicating that her loss-mitigation application was “in progress” and calling to collect information “‘in support’ of loss mitigation” that Plaintiff alleges was irrelevant to her application. Id. at 4. At the time of the amended complaint, Plaintiff alleges that the originally noticed foreclosure sale had been cancelled but that “Defendant had not instructed

[the substitute trustee] to permanently stop foreclosure.” Id. Plaintiff argues that Defendant’s conduct violates RESPA because Defendant “fail[ed] to exercise reasonable diligence, fail[ed] to evaluate all FHA Home Retention Options, and issu[ed] a decision letter with multiple options marked ‘unevaluated.’” Id. She explains that, in her view, Defendant engaged in “dual-tracking,” id., the prohibited practice of “actively pursu[ing] foreclosure while simultaneously considering the borrower for loss mitigation options.” Gresham v. Wells Fargo Bank,

N.A., 642 F. App’x 355, 359 (5th Cir. 2016); see 12 C.F.R. § 1024.41(g) (generally prohibiting dual tracking). Plaintiff’s breach-of-contract claim is based on the allegation that the Deed of Trust incorporates RESPA’s requirements and that seeking to foreclose on her property without complying with RESPA put Defendant in breach. (Dkt. #18 at 5; see id. at 4 (citing 12 C.F.R. § 1024.41(b), (c), (g)). The Deed of Trust (of which the court may take judicial notice, Smith v. MTGLQ Investors, L.P., 851 F. App’x 514, 514 (5th Cir. 2021)), provides that it “does not authorize acceleration or foreclosure if not permitted by regulations of the Secretary [of the Department of Housing and Urban

Development (“HUD”)],” (Dkt. #69-1 at 5 (Denton Cnty., Tex., Prop. Recs., Doc. No. 2016-69774, at 5 (June 14, 2016)). In her TRO application, Plaintiff claims a likelihood of success on the merits of her breach-of-contract claim premised on the allegation that “foreclosure was pursued while required loss-mitigation evaluations were incomplete and while error- resolution obligations remained outstanding.” (Dkt. #63 at 2; see also Dkt. #69 at 6

(stating that “[t]he TRO does not depend on the [second] amended pleading being operative”)). She attached a copy of Defendant’s notice of foreclosure (Dkt. #63-1 (Denton Cnty., Tex., Prop. Recs., Doc. No. 2026-03/014)), which is also a public record of which the court may take judicial notice. She states, and the notice of foreclosure indicates, that Defendant has scheduled a new foreclosure sale to occur on March 3, 2026, no earlier than 1:00 p.m. (Dkt. #63-1 at 1). II. LEGAL STANDARD

A TRO is “an extraordinary and drastic remedy.” Anderson v. Jackson, 556 F.3d 351, 360 (5th Cir. 2009) (citation omitted). TROs “should be restricted to serving their underlying purpose of preserving the status quo and preventing irreparable harm just so long as is necessary to hold a hearing, and no longer.” Granny Goose Foods, Inc. v. Bhd. of Teamsters Loc. No. 70, 415 U.S. 423, 439, 94 S.Ct. 1113, 39 L.Ed.2d 435 (1974); see also Norman Bridge Drug Co. v. Banner, 529 F.2d 822, 829 (5th Cir. 1976) (explaining that “the office of a temporary restraining order is to preserve, for a very brief time, the status quo, so as to avoid irreparable injury pending a hearing on the issuance of a preliminary injunction”).

There are four prerequisites to the entry of a TRO or preliminary injunction. The movant must demonstrate “(1) a substantial likelihood of success on the merits; (2) a substantial threat that the movant will suffer irreparable injury if the injunction is denied; (3) that the threatened injury outweighs any damage that the injunction might cause the defendant; and (4) that the injunction will not disserve the public interest.” Affiliated Pro. Home Health Care Agency v. Shalala, 164 F.3d 282, 285 (5th

Cir. 1999); see Clark v. Prichard, 812 F.2d 991, 993 (5th Cir. 1987) (noting that the standards for TROs and preliminary injunctions are the same).

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Larry Gresham v. Wells Fargo Bank, N.A.
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Bluebook (online)
Catherine Ojiambo v. Freedom Mortgage Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/catherine-ojiambo-v-freedom-mortgage-corporation-txed-2026.