Lawyers: Wayne County should halt tax auction

Lawyers for community groups and residents hoping to block the sale of hundreds of tax foreclosed homes this fall argued their case to the state’s Court of Appeals on Tuesday. Detroit homeowners, joined by the American Civil Liberties Union of Michigan and the NAACP Legal Defense and Education Fund, filed the lawsuit more than a year ago against the city …

Wall Street, America’s New Landlord, Kicks Tenants to the Curb – Bloomberg

The 44-year-old father of two had rented a single-family house from a company called HavenBrook Homes, which is controlled by one of the world’s biggest money managers, Pacific Investment Management Co. Here in Fulton County, Georgia, such large institutional investors are up to twice as likely to file eviction notices as smaller owners, according to a new Atlanta Federal Reserve study. “I’ve never …

Single-Family Landlords Are Sinking Cash Into Rust Belt Rentals – Bloomberg

Detroit isn’t the only old industrial city attracting rental landlords at a record clip. Last year, investors accounted for 75 percent of sales in Flint, Michigan, 68 percent in Gary, Indiana, and 51 percent in Memphis, Tennessee. Other cities with comparable rates are vacation communities such as Myrtle Beach, South Carolina (69 percent) and Honolulu (54 percent). With investors dominating these housing markets, it’s …

Private Equity: The New Neighborhood Loan Sharks Veterans of the Contract Buyers League hit the doors again.

Contract for What? A contract is shorthand for “contract for deed,” also advertised as “rent to buy,” “seller financing,” or “installment land contracts.”  These are not inherently predatory, as any northern Midwesterner will tell you. Land contracts are common ways to finance real estate, especially in rural areas without many banks. In 2009, the last year such data was collected, …

Texas firm accused of preying on black homebuyers

The suit, filed in U.S. District Court, includes 17 plaintiffs, who say they were misled by Harbour Portfolio and associated companies into thinking they were becoming owners when they signed agreements that effectively made them renters. Harbour targeted black areas with the deals, known as “contracts for deed” or “land contracts,” which gave the plaintiffs “all of the obligations of …

Lawsuit: Texas Real Estate Firm Targeted Black Neighborhoods, Swindled Prospective Homebuyers Into ‘Land Contracts’ – Atlanta Black Star

“The companies make it difficult for aspiring homeowners to ever achieve the goal of ownership, which is what they think they are doing,” she told the AJC. “None of the people in this lawsuit understood. They believed they were becoming homeowners and they later found out they were functionally renters.   Source: Lawsuit: Texas Real Estate Firm Targeted Black Neighborhoods, …

How a Home Bargain Became a ‘Pain in the Butt,’ and Worse – The New York Times

“Across the country, people like Mr. Williams have found themselves in similar predicaments. Unable to obtain a traditional mortgage, they have signed a high-interest, seller-financed deal known as a contract for deed that works like an installment plan for housing. For many, these deals can quickly turn into money traps. The deals also have added to neighborhood blight when the …