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North Carolina law firm files suit against Beazer

Mon Mar 26, 2007 5:28pm EDT

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NEW YORK, March 26 (Reuters) - A North Carolina law firm has filed a state lawsuit seeking class action status against Beazer Homes USA Inc. (BZH.N), accusing the home builder and its mortgage company of selling mortgages to unqualified buyers.

The lawsuit was filed on Friday in Mecklenburg County Superior Court on behalf of Mark and Lea Tingly, who bought a newly constructed home in the Southern Chase subdivision -- with houses built for first-time buyers -- in a nearby county. Although the lawsuit states other class member have not been identified or named, it said Beazer Mortgage "would advise or encourage the prospective buyers to falsify information set fourth in their respective loan applications."

The lawsuit also said the company "changed the information set forth on the loan applications by the prospective buyers," in order for the prospective buyer to qualify to buy a home in the Beazer subdivision.

The lawsuit seeks damages for each class member of less than $74,999.

The lawsuit did not say if the Tinglys' home was foreclosed upon and did not reveal their credit history or state if Beazer Mortgage was a mortgage originator for their home or if the couple used a mortgage to buy it.

The law firm declined to comment beyond the complaint. A Beazer representative could not be reached immediately for comment.

((Reporting by Ilaina Jonas, editing by Braden Reddall; Reuters Messaging: ilaina.jonas.reuters.com@reuters.com, +1 646 223 6193)) Keywords: BEAZER LAWSUIT/

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