Jump To Navigation

Arizona Attorney General Sued Companies Over Broken Debt Relief Promises

Posted on August 4th, 2014

Events leading to the simultaneous collapse of the real estate and mortgage markets in 2008 and 2009 left many homeowners with new financial challenges created by an economic recession, high mortgage balances and declining home values. Some homeowners who needed to stop foreclosure and obtain manageable payments were able to obtain the fresh financial start they wanted through Chapter 13 bankruptcy.


Some financially distressed homeowners in Phoenix, Arizona, lost thousands of dollars to unscrupulous companies that promised to stop foreclosure and obtain loan modifications but did neither. The attorney general in Arizona sued two of those companies.


In one of the lawsuits, the attorney general’s office alleged that a Phoenix-based company gave homeowners access only to free forms and the website for the company, but did not provide the mortgage rescue services for which each homeowner paid nearly $2,000. A second company sued by the attorney general is alleged to have charged large fees in advance of services to stop foreclosure and obtain mortgage modifications. According to the lawsuit, the company took the money from homeowners but did not perform the promised services.


As pointed out by the Arizona attorney general, the effects of the mortgage crisis are still being felt in Arizona. The lawsuits filed by his office demonstrate that homeowners dealing with financial challenges are easy prey to businesses promising to stop foreclosure, reduce debt and reduce interest payments. Many people prefer the peace of mind they can get when they work with an experienced bankruptcy attorney to file for Chapter 13 bankruptcy and obtain a fresh start.


Source: San Francisco Chronicle, “Arizona sues 2 mortgage relief companies.

Contact Us for a Free Consultation
Office Locations

Phoenix Office One
Wright Law Offices
2999 N. 44th St., Ste 600
Phoenix AZ 85018

Telephone: 480-845-0145 / 866-703-3287
Phoenix Law Office

Phoenix Office Two
Wright Law Offices
668 N. 44th St., Ste 320
Phoenix AZ 85008

Telephone: 480-845-0145 / 866-703-3287
Phoenix Law Office

Scottsdale Office
Wright Law Offices
7135 East Camelback Road, Ste 230
Scottsdale AZ 85251

Telephone: 480-845-0145 / 866-703-3287
Scottsdale Law Office

Tempe Office
Wright Law Offices
2238 S. McClintock Dr.
Tempe AZ 85258

Telephone: 480-845-0145 / 866-703-3287
Tempe Law Office

Avondale Office
Wright Law Offices
12725 W Indian School Rd, Suite E-101
Avondale AZ 85392

Telephone: 623-258-4480 / 866-703-3287
Avondale Law Office

Prescott Office
Wright Law Offices
1129 Iron Springs Rd
Prescott AZ 86305

Telephone: 623-258-4480 / 866-703-3287
Prescott Law Office

Mesa Office
Wright Law Offices

4856 E. Baseline Rd.
Suite #104
Mesa, AZ 85206
Telephone: 480-845-0145 / 866-703-3287
Mesa Law Office

Glendale Office
Wright Law Offices
20325 N. 51st Ave., Suite 134
Glendale, AZ 85308
Telephone: 623-258-4480 / 866-703-3287
Glendale Law OFfice

Facebook IconTwitter IconVisit Us On Google+Visit Us On Google+