August 3, 2018
One of the many unfortunate outcomes of the subprime mortgage crisis has been that unscrupulous predatory investors scooped up broad portfolios of real estate at very low prices, and then re-sold them in troubled neighborhoods to unqualified buyers on land installment contract.
This had the dual effects of victimizing unknowledgeable and unqualified buyers and keeping many times unoccupied and dilapidated properties from re-entering the stream of commerce with qualified buyers.
One of those predatory investors has been Harbour Portfolio Advisors. Their tactics have spawned a New York Times article on their predatory practices, a law suit from the City of Cincinnati that resulted in an injunction against their practices from Judge Robert Ruehlman (Hamilton County Case No. A1702044) and an ordinance with new land installment contract regulations from the City of Cincinnati. It takes quite a track record to spur that kind of remedial activity.
The routine practiced by Harbour Portfolio appears to be:
- Selling the property to unknowledgeable and unqualified buyers on land installment contract,
- Receiving a down payment and some monthly payments from the buyers.
- Once one payment is missed, declaring the buyers in default and taking the property back.
- If the buyer is able to perform, refusing to cooperate in the conclusion of the sale, eventually forcing a default from the buyer, and moving back to Step #3. (This is certainly what our client experienced)
Our firm recently represented a victim of Harbour Portfolio’s predatory practices, and obtained a judgment from Judge Jody Luebbers. The result was that without further payment our client obtained clear title to the property, obtained a damages award from Harbour Portfolio, and also an award of his attorneys fees from Harbour Portfolio.
If you have been victimized by the unscrupulous tactics of Harbour Portfolio in Ohio or Kentucky or other predatory lenders or sellers, contact either Chris Finney (513-943-6655) or Julie Gugino (513-943-5669).
We are glad to “Make a Difference” in your property or lending dispute.