WASHINGTON. D.C. – U.S. Senators Cynthia Lummis (R-WY) and Tina Smith (D-MN) sent a letter to the National Association of Attorneys General recommending that state attorneys general take steps to protect homeowners from predatory home-buying practices. Senators Lummis and Smith were concerned by recently reported allegations that some franchises of HomeVestors of America, commonly recognized by their advertising catchline, “We Buy Ugly Houses,” were targeting elderly and ill homeowners. The letter details alarming and misleading practices wherein some franchisees allegedly targeted vulnerable homeowners and communities, using deception and coercion to close sales, and employing complex legal maneuvers to prevent their victims from backing out of sales despite unfair conditions.
The letter recommends that state attorneys general inform consumers, undertake a coordinated response to repeated complaints and advocate for tools that empower homeowners.
The letter reads:
“Home equity represents more than a quarter of all household wealth in our country and we are deeply troubled by schemes that are all too eager to pilfer it. We appreciate the dedication of the National Association of Attorneys General to safeguarding consumers and respectfully request that you continue work to put a stop to unfair, deceptive, or abusive acts or practices, and ensure that HomeVestors and other similar firms are not allowed to take advantage of our nation’s most vulnerable homeowners. Americans work hard to build equity in their homes and should be protected from those seeking to reap the benefits of their investments.”
Homeowners who believe they may be a victim of real estate fraud should contact their state attorney general and local law enforcement.
Read the full letter here.
The original story detailing these allegations can be found here.
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