ARIZONA NEWS

AG Brnovich files fraud lawsuit against two Tucson real estate companies

Jul 18, 2021, 6:30 AM | Updated: 8:54 am
(YouTube Screenshot/Mark Brnovich for Senate)...
(YouTube Screenshot/Mark Brnovich for Senate)
(YouTube Screenshot/Mark Brnovich for Senate)

PHOENIX — Arizona Attorney General Mark Brnovich’s office filed a consumer fraud lawsuit Thursday against two real estate companies and a manager for allegedly deceiving consumers in transactions.

The lawsuit alleges Tucson businesses Deed and Note Traders, LLC, 881 Home, LLC, and the manager, David Kinas — all defendants in the case– sold houses under a “wrap mortgage” arrangement and failed to make their loan payments, despite collecting down payments from consumers.

“Owning a home is part of the American Dream, but sadly, that didn’t happen in this case,” Attorney General Brnovich said in a press release.

“Consumers made a down payment and monthly mortgage payments thinking they were getting closer to owning their home. Instead, they got foreclosure notices.”

Wrap mortgages are arrangements where the primary mortgage holder, the defendants in this instance, makes a second loan to consumers who purchase the house. The holder must then continue to make payments on their underlying mortgage or risk a foreclosure that causes the consumer to lose their home.

Also, by failing to provide consumers a title report and a minimum 15-year loan repayment term, the lawsuit alleges, the defendants violated the Deed and Note Traders’ 2006 Consent Decree with the state.

The lawsuit is seeking restitution for up to $10,000 in civil penalties for each violation of the Arizona Consumer Fraud Act, $25,000 for each violation of the consent decree, injunctive relief, attorney’s fees and costs, and the amount owed from Deed and Traders on the 2006 Consent Decree.

This is the fourth time in two years Brnovich has filed against a home warranty company.

Consumers are advised to conduct research before entering into a real estate contract.

The Arizona Department of Insurance Financial Institutions can verify whether a loan company is licensed and whether it has a disciplinary record, while the Arizona Department of Real Estate can verify if a sales person or broker is licensed and has disciplinary actions against them.

Anyone who believes they’ve been a victim of consumer fraud can file a consumer complaint form on the Attorney General’s website.

Arizona News

(Twitter Photo/@TempePolice)...
Associated Press

Body of 18-year-old man recovered from Tempe Town Lake

Firefighters have recovered the dead body of an 18-year-old man who apparently drowned after jumping into Tempe Town Lake early Tuesday morning.
13 hours ago
(AP Photo)...
KTAR.com

Poll finds over half oppose Ducey’s ban on mask mandates in Arizona schools

A poll of Arizonans showed more than half oppose Gov. Doug Ducey's ban on mask mandates in schools and withholding funds from districts that have mask requirements.
13 hours ago
(Bell Bank Park Rendering)...
Kevin Stone

Bell Bank gets naming rights to massive Mesa sports complex

The massive sports and entertainment complex opening next year in southeast Mesa will be known as Bell Bank Park under a 10-year naming rights deal announced Tuesday.
13 hours ago
(Twitter Photo/Phoenix Fire Department)...
Ali Vetnar

Phoenix mountain rescues decrease during pilot program to close trails in extreme heat

A city of Phoenix pilot program to close popular hiking trails during some of the hottest summer days has resulted in fewer mountain rescues for first responders, according to new data.
13 hours ago
Aloys Ntirushwamaboko (Photo via Phoenix Police Department)...
KTAR.com

Silver Alert canceled after body identified as missing 103-year-old Phoenix man

A Silver Alert for a 103-year-old Phoenix man who had been missing for nearly a month was canceled Tuesday after formal identification of his body, authorities said.
13 hours ago
A vial of Covishield, an Indian made vaccine for COVID-19, lies at a vaccination center set up at a...
KTAR.com

Arizona reports 1,934 new COVID-19 cases, 71 more deaths Tuesday

Arizona health officials on Tuesday reported 1,934 new COVID-19 cases and 71 additional deaths from the disease.
13 hours ago
AG Brnovich files fraud lawsuit against two Tucson real estate companies