Arizona sues 2 mortgage relief companies

The Arizona Attorney General’s Office has sued two companies prosecutors say targeted Spanish-speaking homeowners who were trying to save their homes from foreclosure.

Attorney General Tom Horne says the suits show there is still significant fallout from the mortgage crisis.

One lawsuit alleges that a Phoenix-based company called Making All Homes Affordable and its owners charged customers nearly $2,000 for mortgage rescue services. But it only provided a do-it-yourself kit that gives access to free forms and the company’s website.

The second suit says La Paz Source and La Placita charged large upfront fees and promised to stop foreclosures or to get loan modifications they sometimes failed to provide the services for those fees. The owners of La Paz Source closed the firm and reopened as La Placita last year.

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About Michael Gossie

Michael Gossie is an award-winning journalist who has earned more than 50 awards for writing, editing and design. He studied economics at Elmira College in Elmira, N.Y., and put his entrepreneurial spirit to work in 2007, using a 200-year-old family recipe to launch an Italian sauce company. He is a competitive marathon runner, Ironman triathlete and is most proud of being the founding president of the Steuben Arc Foundation in Upstate New York, which serves individuals with developmental disabilities, including his sister.