(YouTube Screenshot / Mark Brnovich for Senate)
PHOENIX – The office of Arizona Attorney General Mark Brnovich on Thursday filed a consumer fraud lawsuit against two companies and real estate managers for allegedly defrauding consumers in transactions.
IN claim claims that Tucson’s Deed and Note Traders, LLC, 881 Home, LLC and manager David Keenas – all defendants in the case – sold their homes under a “full mortgage” agreement and were unable to pay their loan payments despite collecting initial payments from consumers.
“Owning a home is part of the American dream, but unfortunately it didn’t happen in this case,” Attorney General Brnović said in a statement. Press release…
“Consumers made the down payment and monthly mortgage payments thinking they were getting close to owning their home. Instead, they received foreclosure notices. ”
A mortgage wrap is an arrangement whereby the primary holder of the mortgage, in this case the defendants, provides a second loan to consumers buying a home. The owner must then continue to make payments on their primary mortgage, or they risk losing the mortgage, causing the consumer to lose their home.
In addition, by failing to provide consumers with a title statement and a minimum 15-year loan repayment period, as the lawsuit alleges, the defendants violated the 2006 Dealers in Documents and Notes Agreement with the State.
The lawsuit seeks recoveries of up to $ 10,000 in civil fines for each violation of the Arizona Consumer Fraud Act, $ 25,000 for each violation of the Consent Order, injunctive relief, attorney fees and costs, and the amount owed by Deed and Traders for 2006. Consent decree.
This is the fourth time in two years that Brnovic has filed a lawsuit against a housing guarantee company.
Consumers are advised to conduct research before entering into a real estate contract.
IN Arizona Department of Insurance Financial Institutions can check if the credit company is licensed and has disciplinary records, while Arizona Real Estate Department can check if the seller or broker is licensed and takes disciplinary action against them.
Anyone who believes they have been the victim of consumer fraud can file a consumer complaint form with the Attorney General’s Office. Web site…