Arizona Attorney General Terry Goddard's office has filed lawsuits against two Phoenix-area businesses that Goddard said took advantage of struggling homeowners with empty promises to reduce the principal balance of their mortgage loans.
According to documents filed Monday in Maricopa County Superior Court, Goddard's office contends that Queen Creek Mortgage LLC, of Mesa, and Principal Reduction Group LLC, of Scottsdale, charged homeowners as much as $6,000 each to lower the amount of their mortgages.
The lawsuits allege that neither company successfully reduced even one client's mortgage principal.
The phone numbers for Queen Creek Mortgage and its manager, Ray Teerlink, appeared to be disconnected Monday. Messages left at the main number for Principal Reduction Group were not returned as of Monday evening.
According to Arizona Corporation Commission documents, Principal Reduction Group was founded in June by Brian Cutright and Ronald Cardon.
Goddard's lawsuit said the company falsely claimed a success rate of 92 percent.
by J. Craig Anderson The Arizona Republic Dec. 6, 2010 07:17 PM
Home-loan scam alleged in lawsuits
