Predatory Home Buyers

If you can afford it and are in the mood, why not… “Pain is always a form of motivation,” the training manual reads. “Once you find the Seller’s pain, you have a much better chance of buying the house.” ProPublica article, May 11, 2023, documenting its investigation into “We Buy Ugly Houses” and its corporate owner, HomeVesters of America I’ve written about predatory business practices several times before on Crime and Punishment, but usually focused on the companies that lend money, like Pay Day lenders as one example. Their business model targets the poor who are more likely to be in vulnerable social and financial situations and because of low credit scores and lack of higher paying jobs, cannot borrow from a more closely regulated institution. This population is desperate for cash or credit, lenders know it and prey on them and their communities. Predatory practices are baked into an unscrupulous company’s culture and literally taught to its employees, and in the case of HomeVesters, the target of the ProPublica article above, its franchisees. Of course, these practices are never discussed or admitted to publicly, because the companies are savvy enough to put a legitimate face on their business operations, and for good reason: these practices, either individually or taken together, can amount to fraud. And thankfully, fraud is still illegal. Have you had experience similar to mine and/or the schemes uncovered in the ProPublica articles? What should be done to prevent these unethical and potentially illegal business tactics? I’d love to hear your take on this. Feel free to leave your thoughts in the Comment Section below. If you are not already a subscriber, why not take this opportunity to join our community with a free or paid subscription? A new paid subscription or an upgrade from a free to paid subscription will allow me to expand this newsletter with additional, primary source information, like interviews and public information requests, and expanded podcast offerings to include real, live guests. Although I won’t be going on strike any time soon, the current TV writer’s strike demonstrates that writer’s deserve to be paid, and paid well for their work, just like any other profession. Thank you in advance for your financial support of my writing! Crime and Punishment: Why the Poor Stay Poor In America is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber. Get full access to The Poverty Trap at povertytrap.substack.com/subscribe