Hundreds of vacant houses dot the streets of the city. Even though they have rotten wood, broken windows and crumbling foundations, many were scooped up by investment firms during the financial crisis. These firms then made deals with low-income buyers who cannot get a traditional mortgage. The arrangement is called a "contract for deed."
Megan Boram is one of those buyers who is in a high-interest, long term loan with a company called Harbour Portfolio.
"We've made a lot of payments, been here for 3 years but not too much of it has gone towards the principal. So, we haven't paid much off at all," said Boram, who wanted to raise her three children in a home of their own.
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The contract requires Megan and her partner to pay the monthly mortgage, yearly property taxes and keep the house insured. But, these working parents did not realize that their names are not on the deed. Montgomery County property records show that Harbour Portfolio owns the house even though they have invested thousands of dollars to bring the house up to code.
"We painted the outside, fixed the fencing, tore down an old garage, put in a hot water heater, new flooring and paint inside the house," Boram said.
The problem is, if Megan misses a payment, Harbour Portfolio can evict her family, just like tenants and flip the house to a new buyer.
"They send us statements all the time saying what we're paying, so I hope it's all okay," said Boram.
Billy Hunt of Dayton, is also in a contract for deed with Harbour Portfolio. He also also invested in a furnace,. water heater, pain and interior doors.
"We're talking thousands of dollars," said Hunt.
Even so, Harbour Portfolio is the owner of record on the property, not Billy.
"I think this kind of contract, you just walk away if you want to," said Hunt. "It's really not a lot different than renting."
Ann Carpenter of the Federal Reserve has been looking into contracts for deed.
"There are no disclosures. There's no inspection on the property. The properties are sold "as is" so that means there could be enormous amounts of improvements that are necessary," said Carpenter. "If you miss a payment, if you do not properly insure the property, or bring it up to that vague habitable condition standard, the property can be lost."
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In a sweeping lawsuit, the city of Cincinnati took aim at Harbour Portfolio, and called its contracts "predatory." The lawsuit also said the firm owes more than $360,000 in unpaid fines, fees and violations and failed to properly maintain dozens of homes.
"We thought we had a house and come to find out, it's not what we thought it was," said Jackie Brown OF Atlanta.
Brown joined other Georgia buyers in a class action lawsuit against Harbour Portfolio.
"I'm upset. I'm really upset," said Brown. "They're already making a profit off us now that we fixed it up, Now they can take it back and now they can make more and we end up with nothing."
New Center 7, working with our Cox television partners in 6 other states, reached out to the CEO of Harbour, Charles "Chad" Vose. He did not return our calls or emails but we did track him down in person, at his company headquarters in Dallas, Texas.
"You are on private property," said Vose to our camera crew. " I have not received any phone calls or any emails from you."
Vose had a security guard show us the door and we left without any answers for worried buyers.
"This is kind of scary," said Billy Hunt. "People are just trying to have something."