PHOENIX (Legal Newsline) — Arizona Attorney General Mark Brnovich announced July 26 that his office has obtained a $241,401 judgment against Mortgage Relief Solutions Inc. (MRS) and owner Eric David Brown over allegations of consumer fraud.
According to allegations, MRS targeted homeowners who were “upside down” on their mortgages and were considering defaulting. MRS and Brown allegedly said they could take over the homeowners’ mortgage payments. The defendants would tell them they could move on and avoid further negative consequences to their credit ratings, Brnovich alleged.
The defendants would purportedly also tell consumers that they had tenants ready to move into the homes with the eventual goal of purchasing them. Clients would then give control of their homes to the defendants, who would then allegedly fail to make the mortgage payments – which would, in turn, negatively affect the consumers after the homes foreclosed. Additionally, the defendants would not put tenant rent payments toward the mortgage and would instead use them for Brown’s own gain.
In addition to the monetary penalty, MRS and Eric Brown are prohibited from engaging in mortgage or real estate-related activity in Arizona.