Attorney General Stops Scheme Selling Overpriced Manufactured Housing

Raleigh, NC -- North Carolina Attorney General Roy Cooper stopped a scheme deceiving customers into buying overpriced manufactured homes with loans they couldnt' afford.

Cooper won a temporary court order on Wednesday. He is trying to permanently stop the scheme and win back money for customers.

About 10 people have contacted Cooper's Consumer Protection Division about the schemes. Affidavits from 11 consumers and former employees from Burke, Catawba, Caldwell, Randolph and Yadkin counties were filed with the complaint.

The complaint names three companies:

·        Phoenix Housing Group, Inc. (Phoenix) sells manufactured homes and land/home packages and arranges financing for buyers.  The company, headquartered in Greensboro, also does business as HomesAmerica and Southern Showcase Housing and has offices in Asheboro, Asheville, Burlington, Granite Falls, Greensboro, Hendersonville and Winston-Salem. 

·        K&B Homebuilders, Inc. (K&B) sells stick-built homes, modular home/land packages, and foreclosed homes in North Carolina.  K&B was founded by a former Phoenix employee and currently employs several sales agents who used to work at the Phoenix store in Granite Falls.

·        W.R. Starkey Mortgage, L.L.P (Starkey) of Plano, Texas provided financing for consumers who bought homes from Phoenix between January 2007 and September 2008.

Follow Digtriad On
Join Us On