Local Homebuilder
Faces Government Action for Alleged Deceptive Practices
Pulte Home Corporation Alleged to Mislead
Consumers
Austin, TX – BBB has issued an F rating to Pulte Home Corporation due to a recent
government action from the Arizona Attorney General. Alleging the companies
engaged in deceptive trade practices, an Injunctive Relief was filed against
Pulte Home Corporation and its nationwide lender, Pulte Mortgage, LLC, in
August of 2010.
According to the Arizona Attorney General, Pulte Home Corporation misled
consumers to believe they were pre-qualified for financing at certain interest
rates with Pulte Mortgage. The consumers report they paid deposits to secure
these rates but were later denied the estimated financing. Despite qualifying
under the terms and conditions of the purchase agreement, Pulte Mortgage
allegedly refused to issue refunds to the consumers who were unable to qualify
for the financing they were promised. The Attorney General requested that the
court restrain the companies from engaging in this conduct and ordered the
companies to pay refunds to those affected.
The Arizona Attorney General also alleged that Pulte’s online advertising
deceptively targets the Spanish-speaking community. While the English website
describes the “advantages and risks” of various loan products, the Spanish
language website fails to disclose the risks and only lists the advantages. To
view the Pulte Home Corporation’s current BBB Business Review, click here.
BBB Advice for
Purchasing a Home:
· Start With
Trust. Consumers should visit bbb.org to check the BBB
Business Review of any home builder before making a decision. Pay attention to
how the company has responded to past disputes and if there have been any past
concerns with the company’s advertising.
· Have a Loan
Pre-approved in Advance. Many sellers are hesitant to accept an
offer without knowing a buyer can obtain a loan. Check with your bank or a
mortgage broker to determine how much financing you need and find the right
loan for your financial situation before you are ready to make an offer.
· Consider Using
an Agent. Real estate agents can save time by sending you
listings of homes that fit your needs. Often they may know of new listings that
are not yet on the market or are overpriced.
· Do a Home
Inspection. Carefully walk through and take note of any
potential repairs that may need attention. While a seller may not be required
to make every requested repair, often they will be willing to compromise rather
than not make a deal.
· Be Prepared to
Negotiate. A seller can generally ask any price they want for a
home, so there may be room for you to negotiate a different offer. Look for
recent sale prices of other comparable homes in the area to get an idea of a
reasonable price range.
To check the reliability of a company and find trustworthy businesses, visit BBB.
About Better Business Bureau:
BBB's mission is to be the leader in
advancing marketplace trust. BBB accomplishes this mission by creating a
community of trustworthy businesses, setting standards for marketplace trust,
encouraging and supporting best practices, celebrating marketplace role models
and denouncing substandard marketplace behavior.
Businesses that earn BBB
Accreditation contractually agree and adhere to the organization's high
standards of ethical business behavior. BBB is the preeminent resource to turn
to for objective, unbiased information on businesses and charities.
Contact BBB serving
Central, Coastal and Southwest Texas at (512) 445-4748.
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