Real Estate & Property Law
Home-Buying ‘Dream’ a Nightmare, Suit Claims
Posted Aug 23, 2007 10:56 AM CDT
By Debra Cassens Weiss
A federal judge is permitting a lawsuit to go forward that claims lawyers, lenders and real estate professionals duped inexperienced home buyers into overpaying for substandard homes in New York.
The eight plaintiffs say they responded to ads for United Homes featuring minority families and the promise, "We Can Make a Dream Come True," the New York Post reports.
The suit claims the company promised to repair the homes but didn’t always follow through. Lawyers furnished by the company to “help” buyers instead pressured them to sign contracts, the suit says, and appraisers overvalued the homes.
The buyers say they were given subprime mortgages they couldn’t afford, and many are now in default.
United Homes says it will vigorously defend the suit.