Attorney General Horne suing companies for allegedly targeting distressed homeownersPosted: Updated:
PHOENIX -- Arizona Attorney General Tom Horne is going after two companies alleged to have taken advantage of distressed homeowners.
Horne announced on Wednesday that he has filed a lawsuit against Phoenix-based Making All Homes Affordable, LLC and its owner Albert Figueroa. He is also suing Tucson-based La Paz Source, LLC, its owners, and their new operation La Placita Multi Services.
MAHA is accused of violating the Consumer Fraud Act by not properly representing the value and nature of their program.
Horne’s lawsuit alleges that MAHA tells customers that they provide favorable mortgage modifications, when in fact they’re charging for forms and information that are available for free on government websites.
MAHA is also accused of using fake customer testimonials on their website and charging clients a fake sales tax of 9.3%.
La Paz Source, LLC and La Placita Multi Services are accused of telling customers that they will stop the foreclosure process and obtain loan modifications, when in fact they’re not licensed to conduct such business in Arizona.
La Paz Source also allegedly charged large upfront fees, which were prohibited by state and federal law, and then didn’t deliver the services they had promised.
Horne said these lawsuits serve as a reminder that people should always strive to work with “reputable servicers.”
“There is still a significant amount of fallout from the mortgage crisis, and consumers need to remain vigilant when approached about mortgage modification services,” stated Horne.