State Attorney General Gary King has gone to court to prevent a 78-year-old Chimayó woman from being thrown out of her home because of a mortgage foreclosure.

The Attorney General's Office says Angelina D. Martinez lives on a $501 monthly Social Security benefit, but her refinanced mortgage came to $1,451 a month for a $175,000 mortgage.

In a complaint filed with the state, she and her daughter said that Martinez's signature was forged and mortgage application information was falsified. Martinez said that she never appeared before a broker to complete the information, although the broker said she did.

The 2006 loan application states Martinez made $3,200 a month at an Española firm. The Financial Institutions Division determined she did not work there and lived on much less income from Social Security.

The division also said the home's appraised value was inflated — instead of her three-bedroom home on less than half an acre, the application described a four-bedroom home on an acre lot.

The listed defendants are Deutsche Bank of New York; US Bancorp of Minneapolis; Saxon Mortgage Brokerage Inc. of Fort Worth, Texas; North American Specialty Insurance Co. of Manchester, N.H.; NovaStar Mortgage Services Inc. and Acceleron Lending Inc., both of Kansas City; mortgage loan brokers Orlinda Martinez and Angelica Duran; and Mountain View Mortgage in Chimayó.

Court papers indicate that Orlinda Martinez is a licensed mortgage broker and Duran is an unlicensed broker employed by Martinez and Mountain View Mortgage Co.

The listed phone number for Mountain View Mortgage Co. has been disconnected. Orlinda Martinez's phone number is unpublished, and the operator had no listing for Angelica Duran.

The lawsuit seeks to prevent the foreclosure and rescind the loan contract. It also seeks more than $8,619 in actual damages, $5,000 for each violation of the Unfair Practices Act, and $250,000 in punitive damages plus restitution to Angelina D. Martinez and forfeiture of the remaining loan interest.

The case is one of two lawsuits King filed Friday alleging violations of the state's Mortgage Loan Company & Loan Broker Act, Unfair Practices Act and Home Loan Protection Act.

The AG's Office also seeks to rescind what it termed a "usurious" loan for an elderly Los Lunas couple who allege they were duped into a fraudulent mortgage loan in the amount of $42,000. They also allege a misappropriation of more than $10,000 and that they were grossly overcharged for brokerage fees.

That case stems from a December 2007 complaint filed by Fred and Linda Bachechi.

The defendants are listed as Los Lunas mortgage brokers Wendy K. Montoya (aka Wendy K. Simpson) and Mike Montoya; Discount Mortgage of Los Lunas; Zia Trust, a commercial bank in Albuquerque; and Robert L. Garretson, a private investor with an IRA at Zia Trust and holder of the note on the Bachechis' home.

The statement from the Attorney General's Office said both lawsuits were filed on behalf of the state Financial Institutions Division of the New Mexico Regulation and Licensing Department after investigations into complaints by the consumers. The attorney general does not represent private individuals.