One reader suggested this topic. "Lawsuit rumblings are starting: Were you sold a Puffed Overinflated Home Value by a Developer? We’re looking for other folks that were 'puffed' on a home purchase that was supposed to appreciate to a value to cover the downpayment and never even came close."

"Also, told it would rent for about the mortgage value and will never rent for near that. We are seeking a competent attorney that can help represent others like us to come out with some fair amicable solution with these developers. Can anyone can help us prevent a financial disaster?"

The Arizona Republic. "Complaints against real estate agents are on the rise, with consumers accusing them of everything from selling property without a license to cutting corners to make a sale."

"As of June, the number of complaints opened with the Arizona Department of Real Estate had jumped 53 percent since 2003, the year before the housing boom took the Valley by storm. Complaints forwarded for discipline increased 150 percent in that same time."

"Part of the spike in complaints reflects the rush of new agents who flooded the market to take advantage of the housing boom of 2004 and 2005. The number of new brokers and agents rose 38 percent in the past three years, well behind the pace of complaints."

"Elaine Richardson, the state's real estate commissioner, said she was alarmed by the trend of new complaints exceeding the number of new brokers and agents. 'If we don't get a handle on it, that brings us back to people getting bilked out of their money,' she said."

"Patti Schubert of Fountain Hills recently filed a complaint with the real estate department and other agencies, accusing her agent and a condo developer of mishandling her paperwork. She said she and her husband, Steve, lost nearly $92,000 in earnest and upgrade money as a result."

"'I honestly think the agents got caught in the frenzy of the market,' Schubert said. 'They were making a lot of money. They forgot their responsibility to their clients.'"

"David Khalaj, an agent in Ahwatukee, thinks some of complaints come from the frustration of a slow market. 'There's just no traffic out there,' he said. 'Everybody is frustrated right now with the way the market is.'"

The Denver Post. "The Denver/Boulder Better Business Bureau has received 20 complaints about Altus Real Estate during the past three years, more than any other mortgage company in Colorado. Five involve allegations that Altus brokers lied or misled them about loan terms."

"Deceptive practices by some brokers are helping to push homeowners into foreclosure, experts say. 'It's a serious problem. People are getting into loans they can't afford,' said Colorado Attorney General John Suthers. 'That puts them at a higher risk of foreclosure.' The state's foreclosure rate has led the nation for eight consecutive months."

"Loans with higher rates or prepayment penalties can boost the lender-paid broker commission by one to three percentage points, or up to $9,000 on a $300,000 loan. A former Altus broker said Altus tried to put customers into high-commission loans. 'I was asked by a manager 'Why aren't you selling the option-ARM?' said the former broker, who asked not to be named."

"Barbara Mattern said she was told by an Altus broker that the monthly payment on her $556,0000 loan would be less than $1,000. But when her first mortgage-payment stub arrived in mid-2005, the principal-and-interest payment was about $3,000, she said."

"Mattern walked away from the home she loved. The loan was just one factor in her foreclosure. Now she's living with a relative in Nebraska, and her belongings are in storage. 'I don't know what I'm going to do,' she said. 'I'm just kind of lost right now.'"

"Mitch Hyder cringes as he looks through the loan-refinancing documents he signed in December 2005. There, on one document, is the 7.46 percent interest rate. Another document spells out details of his option ARM, an adjustable-rate mortgage with a variety of payment options."

"Hyder called Altus after hearing a radio spot offering no payments for 12 months. Hyder said the broker quickly talked him into a different loan, with a 2.9 percent interest rate for five years. The broker never told him it was an option ARM or that the low numbers were for a payment that would cause his loan debt to grow up to 125 percent of the original balance, Hyder said."

"He admits he didn't read the closing documents carefully, relying instead on what the broker told him. 'I now call myself Capt. Dumbass,' said Hyder."

"Hyder's $244,000 loan and an accompanying $48,800 equity line of credit were through lender Washington Mutual. Altus collected $11,100 in fees, $7,800 from Washington Mutual and $3,300 from Hyder. 'We're making the minimum payment and losing all the equity in our home,' Hyder said. 'It's going to be a very expensive lesson.'"