Doorknocking Home Buyer Victims of Contract Buying Scams in Pittsburgh

Pittsburgh   The more we researched the revival of contract for deed land purchases in places from Memphis to Chicago, Detroit to Philly, and the rapidly spreading, predatory scam involving rent-to-own agreements, the more it became obvious that we had to get on the doors and listen to what people were saying who were living in these houses and facing the daunting odds and brutal gauntlet to home ownership. ACORN assembled a team of veteran organizers from Philadelphia, Boston, Brooklyn, and New Orleans to rendezvous in Pittsburgh to partner with our affiliate, ANEW, and its great leaders and staff, to begin a doorknocking blitz in three cities in an organizer’s version of a listening tour and an exploration on whether or not there was potential heat and traction for a Contract Buyers Campaign or whether or not families signing these agreements were happy campers.

Actually, camping did come up quickly in one of the first visits in the team I was with, but happy was never ever mentioned. When we got up the steps a gate blocked the porch that said “Do Not Enter,” but after I tapped on the window, a woman came out, and when I said we were talking to people who had experience with rent-to-own purchase agreements, she waved us all into the living room, sent the children scurrying so we could sit, and she had her partner start the conversation saying they had had nothing but trouble in buying the house, and then proceeded to detail years of trials and tribulations with Vision Properties, based in South Carolina and this scheme. From the day they signed the agreement and even before moving in, they discovered someone had kicked in the back door and stripped the electrical wiring and the plumbing. They called Vision, asking them to take responsibility, and Vision said they were on a triple net lease, and it was all on them, so in their words the first six months they “were camping in the house.”

That was four years ago so the situation has improved, but their relationship with Vision remains poisonous. They had paid $1000 down payment for a house Vision said they were selling on this basis for $20,000. The first five years though their monthly payments would be $300 per month with 30% supposedly going towards what they described as an additional down payment, which would add another $6000 to their down payment. They weren’t able to put their hands on the agreement to show us, but supposedly only then would they start really purchasing the house from their understanding. We didn’t bother them with the math, not wanting to be bad news bears, but the numbers were already shocking. In another year, they would have paid $7000 on something Vision was calling a down payment and another $12000 in rent to Vision, which clearly despite having an ostensible rent-to-own agreement was not adding up to any payments on the principal, even though at the end of their first lease term they would have paid $19,000 against the value of a $20,000 house. They had put another $5000 into the place, not counting their countless hours of labor, and felt fortunate that the borough inspector was working with them on a problem with the sewer line in the other half of their house which everyone involved knew was going to cost thousands to repair. Without any of us saying it, they knew and we knew, that Vision was likely going to be telling them after five years to keep paying this so-called rent with only a piece of it going towards a deed at the end of their rainbow. Oh, and don’t think for a second that Vision is smiling yet as they giggle while walking to the bank. While changing jobs as a housekeeper in a Pittsburgh motel this last December, they were late on one payment and Vision gave them a 7-day eviction notice which they only avoided with a phone shouting match and a double rent payment of $600.

When I asked if they were ready to come to a meeting in a couple of weeks, there was a quick yes from both of them. Were they prepared to bang on the table and shout their protests? Hell, yes, was the response. They had tried to post warnings to others on Facebook about these scams. They had been talking about running for the borough council to make them listen.

This was just one story from the doors.

It wasn’t exceptional though. It was typical. There was resignation and understanding from every family that they were caught in a scam, but in the common conflict of predatory transactions, all of them had been desperate for affordable housing and some way to make something their own, took the gamble with their eyes open, hoping for some good faith, and now were reaping the whirlwind with anger and frustration and looking for justice and ready to embrace and take action with an organization willing to allow them to fight.

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