On April 18, HomeVestors of America executives held a virtual meeting for its nearly 1,150 franchisees. The purpose: Alert local “We Buy Ugly Houses” operations about a forthcoming ProPublica investigation into their business tactics.
“It is not going to be flattering for us,” HomeVestors CEO David Hicks warned.
Our reporting found HomeVestors franchisees who used deception and targeted the elderly, infirm and those so close to poverty that they feared homelessness would be a consequence of selling. The franchisees were trained by HomeVestors to look for signs of desperation and pounce on so-called distressed sellers. Many used legal tactics, described as predatory by five experts, to trap sellers in below-market deals.
A HomeVestors spokesperson said in a statement that ProPublica’s reporting examined a small fraction of the more than 71,400 homes bought by its franchises since 2016. “We do not discriminate or target our advertising to any specific demographic groups based on age, race, or socio-economic status,” the company said. It has removed several franchises and is investigating some cases identified by ProPublica to “determine appropriate action.”
