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.

Lifetime Windows & Doors

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

(Photo by Jeff Topping/Getty Images)...

Palo Verde nuclear power plant west of Phoenix to test emergency sirens

Emergency sirens designed to alert nearby residents of a problem at the nuclear power plant far west of downtown Phoenix will be tested Wednesday, officials said.
5 hours ago
(Indicap Rendering)...

Developers break ground on 113-acre industrial park in Mesa

Developers have broken ground on a 113-acre industrial park in Mesa that will be home to more than 1.6 million square feet.
5 hours ago
(City of Avondale Photo)...

Avondale starts month of holiday festivities Saturday with WinterFest

Avondale will kick off a month of holiday festivities Saturday night with WinterFest, family-friendly event at the Civic Center amphitheater.
5 hours ago
(Cave Creek Museum Photo)...

Cave Creek Museum to construct Veterans Memory Garden

The Cave Creek Museum announced it will construct the Veterans Memory Garden to honor those who served and the unknown fallen soldiers.
1 day ago
Sidney Garrand (Maricopa County Sheriff's Office Photo)...

Man indicted on second-degree murder in road rage shooting death of 8-year-old in Phoenix

A man has been indicted on second-degree murder in the road rage shooting death of an 8-year-old girl in Phoenix last month.
1 day ago
(Facebook Photo/Daily Dose Midtown)...
Kevin Stone

Scratch Daily Dose in midtown Phoenix off your list of brunch spots

Midtown Phoenix lost a popular brunch option last week when the Daily Dose Kitchen & Bar closed its doors for good.
1 day ago

Sponsored Articles

Quantum Fiber

How high-speed fiber internet edges out cable for everyday use

In a world where technology drives so much of our daily lives, a lack of high-speed internet can be a major issue.
Quantum Fiber

Stream 4K and more with powerful, high-speed fiber internet

Picking which streaming services to subscribe to are difficult choices, and there is no room for internet that cannot handle increased demands.

Key dates for Arizona sports fans to look forward to this fall

Fall brings new beginnings in different ways for Arizona’s professional sports teams like the Cardinals and Coyotes.
AG Brnovich files fraud lawsuit against two Tucson real estate companies