SitemapFor far too many individu- als in our state and region, pursuing the American dream too often descends into living an American nightmare.
That’s because the house they occupy never becomes their home.
Unfair and sometimes racist practices tied to Land Installment Contracts, or LICS, too often target the poorest and most vulnerable individuals among us with false hopes of home ownership.
Here’s how Ian Beniston, executive director of the Youngstown Neighborhood Development Corp., described land contracts: “It’s basically a scheme, particularly in distressed neighborhoods. You get individuals [who] generally aren’t likely to get a bank loan, so they think this is their only opportunity [to become a homeowner], and they are preyed upon.”
The predators, profiting from the wreckage of the housing foreclosure crisis, purchase homes for as little as $3,000, then sell them through land contract for sometimes ten times that amount. The tenant then may typically pay $3,000 down and $200 monthly for 10 or more years before ever gaining a deed and any equity.
In addition, the tenant also is strapped with the costs of bringing the home up to code, which can result in tens of thousands of dollars in additional expenses.
Too often, however, the vendee misses a payment or two, and the owner ends up evicting the tenant, pocketing his or her ill-gotten gains and starting the greedy unethical cycle all over again.
Sadly, the scope of this sleaze is monumental in Ohio, where ProgressOhio recently reported 47,600 land contracts in effect. To read the full editorial from The Vindicator, click here.