Photo: Elenathewise

State officials from New York alleged in a federal lawsuit filed Thursday that Vision Property Management sold homes in need of severe repair to consumers without telling those buyers about many of the unsafe conditions documented about the property.

According to the lawsuit, which was filed in the Southern District of New York, Vision is alleged to have operated an illegal, unlicensed mortgage-lending business to execute those transactions.

The litigation was filed jointly by New York Attorney General's Office and the state Department of Financial Services, which regulates the mortgage-lending industry.

“As alleged in the complaint, Vision swindled vulnerable New Yorkers who wanted nothing more than the American dream of homeownership but instead got distressed properties with unsafe, squalid conditions and high-interest, predatory loans,” said DFS Superintendent Linda Lacewell.

Vision advertises itself as a lease-to-own company, which essentially allow buyers to make payments toward the value of a home with the option of purchase. The lawsuit filed Thursday alleged that Vision would buy severely distressed properties and market them at a much higher price with high-cost interest rates.

The suit claimed that Vision targeted low-income consumers eager to own a home, or who weren't able to take out a mortgage. Those homes often needed extensive repairs, which Vision is alleged to have ignored before marketing a home, and in many cases didn't disclose to consumers.

The combination of expensive repairs and high home costs was ultimately bad for business, the suit said. Vision apparently routinely evicted consumers, who had invested money into the homes, because they couldn't afford to keep up with costs.

The company's data indicated that more than 40% of the seller-financing agreements it signed with New York consumers ended in an eviction or surrender of the property, according to the lawsuit.

“For nearly a decade, Vision put profits above people — fraudulently targeting, preying upon, and exploiting aspiring homeowners, including people with disabilities, the elderly and those living on fixed income,” Attorney General Letitia James said. “These deceptive and abusive practices have trapped New Yorkers in mold-infested, dilapidated homes, and wrongfully placed the onus on consumers to pay the price.”

The lawsuit includes a handful of descriptions of the homes, which were inspected before they were marketed to consumers.

“The black mold problem is out of control at this home and may fail HUD requirements and o[u]r standards,” one inspector wrote. “This home would cost more in repairs, mold remediation, remodeling, and asbestos removal than current value of home.”

Despite the report, that home was offered to consumers, according to the lawsuit. 

Vision made about 150 loans that qualify as subprime home loans under New York law, most of which that also qualified as high-cost loans under, according to the suit, but didn't comply with the state's banking law.

Aside from that law, the suit was brought under the Dodd Frank Act, the Truth in Lending Act, and various other state laws.

It's not the first time Vision has been under the scrutiny of government. Fannie Mae, the government-sponsored mortgage association, stopped selling homes to the company after an investigation into its practices in 2017.

A call for comment made to Vision on Thursday was not immediately returned. An attorney for the company has not been listed for the case, according to the federal filing system.

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