Historical September–October 2023 article. Dates, prices, services and contacts describe the source period; current availability has not been established.
Are you getting calls or text messages from strangers eager to buy your home? Proceed with caution. Homeowners should be alert to unsolicited offers with enticements of a big cash payment and quick closing.
These buyers may employ fraudulent practices to pressure innocent residents into selling fast at a price below market value.
A national investigation by ProPublica, a nonprofit newsroom that investigates abuses of power, has revealed deceptive practices by “We Buy Ugly Houses” that target vulnerable homeowners.
On June 28, 2023, the news source reported that David Hicks, president and CEO of parent company HomeVestors of America, resigned after the findings were made public. Fitting the profile of vulnerable targets are Skinker-Debaliviere seniors on fixed income, squeezed by rising consumer costs and deferred home repairs, who may be exposed to such practices. Former CEO Hicks claimed that the company helps communities by purchasing difficult-to-sell properties and returning them to the market in an improved condition.
However, ProPublica found that the company focused its advertising campaigns on people in vulnerable situations, teaching franchisees how to “find the pain” of a homeowner, enabling acquisitions at rock-bottom prices. For example, homeowners in dire financial straits, and elderly owners who don’t understand the written contracts, were targeted for deceptive tactics. And franchisees searched the premises for negative conditions, such as house pet odors, to add pressure. “That cat piss smell,” observed Hicks, “that’s money” for the company.
But how do they identify their targets? Searching the public land records is an easy approach. For example, if you recorded your title four decades ago, you are likely reaching retirement age and have earned an unwelcome label: Target. HomeVestors bills itself as the largest cash homebuyer in the country, with franchisees increasing from 65 in 2009 to nearly 1,150 today.
The company has been bought and sold several times in the past 15 years and is now owned by Bayview Asset Management.
The Housing & Zoning Committee (HZC) of the Skinker-DeBaliviere Community Council is devoted to fostering the residential quality of our neighborhood.
We monitor rental property for compliance with city occupancy limits and evaluate proposed city regulations for short-term rentals. Let us know if you’ve been subjected to predatory practices involving a home sale. Contact SDCC’s office at 314-862-5122 or executive director Mike Reid at mike.reid@skinker-debaliviere.com. One way to reduce costs is to use cooling and heating systems that are more energy efficient. Energy companies offer rebates and financing plans. Spire can help with furnaces, thermostats, boilers and water heaters: Rebates for home | Spire Inc. (spireenergy.com) or call 800-887-4173. Ameren Missouri has rebates for HVAC systems: www.amerenmissourisavings.com/coolAC or call 866-268-3729.
Originally published in The Times of Skinker-DeBaliviere, September–October 2023.
Read this article in the original newspaper issue.
Original source: SD_Times2023_09.pdf, printed page(s) 6; PDF page(s) 6.
