HomeVestors, the company behind those "We Buy Ugly Houses" billboards, has a stated goal: Help homeowners out of "Ugly Situations."
But our investigation found HomeVestors franchisees that used deception & targeted America's most vulnerable. 🏘️🧵👇
But our investigation found HomeVestors franchisees that used deception & targeted America's most vulnerable. 🏘️🧵👇
2/ These tactics targeted the elderly, infirm and those so close to poverty that they feared homelessness would be a consequence of selling.
propublica.org
propublica.org
3/ There are two sides of HomeVestors.
The public sees billboards, TV ads and postcards with “Ug,” a friendly caveman mascot. Sometimes he’s grinning and holding a bag of money.
The public sees billboards, TV ads and postcards with “Ug,” a friendly caveman mascot. Sometimes he’s grinning and holding a bag of money.
4/ But behind the scenes, franchisees are taught to “find the pain” when interacting with desperate homeowners.
5/ They’re also taught to hunt for signs of desperation: water shutoff notices, police tape, boarded-up windows, burn scars.
Here’s what they’re told to do when they see possessions piled on the curb:
Here’s what they’re told to do when they see possessions piled on the curb:
6/ A HomeVestors spokesperson told us that they don’t target the elderly or other homeowners based on “life events.”
She added that franchisees are encouraged to include family members in the deal when approaching older sellers.
She added that franchisees are encouraged to include family members in the deal when approaching older sellers.
7/ But the company…
• Encourages its franchises to build relationships with nursing home administrators
• Delivers ads to areas slammed by natural disasters
• Sends mailers to those enduring divorces or deaths in the family.
• Encourages its franchises to build relationships with nursing home administrators
• Delivers ads to areas slammed by natural disasters
• Sends mailers to those enduring divorces or deaths in the family.
8/ HomeVesters is unequivocal on one point: Don’t take advantage of people with diminished mental capacities.
But records show a pattern of disregard for that directive:
But records show a pattern of disregard for that directive:
9/ We found that franchisees also routinely resorted to aggressive legal tactics to trap sellers in deals.👉
10/ Sometimes, they filed “memorandums of contract,” which make it harder to back out if you second guess the deal.
Sometimes they sue to force the sale of a home.
propublica.org
Sometimes they sue to force the sale of a home.
propublica.org
11/ That’s what happened to David Casanova. His elderly mother, Corrine, signed a sales agreement in 2016 with a CA-based franchise called Patriot Holdings.
Corrine had dementia. When David tried to cancel the sale, Patriot Holdings sued to enforce it.
Corrine had dementia. When David tried to cancel the sale, Patriot Holdings sued to enforce it.
12/ Patriot Holdings didn’t back down until Cory Evans, a former co-owner, was convicted of two felonies for other HomeVestors business dealings.
(Evans declined our interview requests) vcstar.com
(Evans declined our interview requests) vcstar.com
13/ In response to our reporting, HomeVestors issued a statement claiming the situations we uncovered represent a small fraction of its business. They said they were investigating some of the cases we found & pointed to a 96% seller approval rating, which is calculated internally
14/ Once we contacted HomeVestors for comment, the company quickly forbade franchisees from “clouding” sellers’ titles — a maneuver that makes it more difficult to back out of a sale if you change your mind.
15/ They said suing sellers should be a last resort. Doing it often puts “the entire system at risk,” according to their general counsel.
16/ HomeVestors also unveiled a plan to “bury” our reporting with strategic ad buys and aggressive SEO marketing.
18/ If you have a tip you’d like to share about HomeVestors or other players in the real estate investment space, please do so here: propublica.org
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