SitemapThe city of Cincinnati’s aggressive tactics in confronting two land contract companies it criticized for “predatory” practices could provide a road map as Youngstown attempts to rein in the problem.
Harbour Portfolio Advisors of Dallas, Texas, and Vision Property Management of Columbia, S.C., both settled lawsuits with Cincinnati this month that resulted in $213,679 in payments along with agreements from the companies to change the way they do business in that city.
The companies market land contracts, also known as rent-to-own or lease-to-own agreements, to prospective buyers who don’t qualify for home-mortgage loans. The contracts require the buyer to assume the responsibility for maintenance and staying in compliance with city housing codes.
The companies still hold the deeds, so if a buyer under a contract defaults on a payment, the companies keep all payments and the home.
Ian Beniston, executive director of the Youngstown Neighborhood Development Corp., which helped lead a trip to Columbia, S.C., recently to confront Vision about its tactics, said Cincinnati is at the forefront of addressing the issue.
“Cincinnati is aggressively going after the most notorious companies, and they’re getting results,” Beniston said.
Cincinnati’s lawsuit against Harbour, filed last year in Hamilton County Common Pleas Court, alleged that the company purchased thousands of homes from Fannie Mae after the housing crisis, failed to register or maintain its Cincinnati properties and sold or rented the properties without disclosing known defects.
It asked for payment of unpaid fees and fines and a court order that demanded Harbour comply with the city’s codes among other relief.
Harbour agreed to pay the city $125,000 and Vision agreed to pay $88,679. To read the full story from The Vindicator, click here.