Beazer Homes, a housing developer in Charlotte, North Carolina, has agreed to pay a settlement fund worth $50 million after it was accused of using sales tactics that contributed to the high number of foreclosed properties and distressed homes for sale in its starter housing developments.
According to local reports, home foreclosures in Charlotte located in Beazer's development sites were partly caused by the sales techniques used by the developer to lure consumers. The reports reveal that the firm arranged loans that most consumers cannot afford, thereby violating lending rules established by the federal government.
With its alleged role in contributing to the number of properties under North Carolina foreclosure lists, Beazer was charged by the U.S. Attorney's Office of accounting and mortgage fraud. According to court reports, some employees of the company allegedly offered down payments to home buyers then inflated the prices of residential properties to cover the costs.
Another accusation leveled against the firm was charging buyers with discount points that are paid to lenders in an effort to get a lower rate of interest. The money earned from these points was reportedly kept by the firm. In certain cases, the prices of houses were allegedly increased to cover the amount. These actions, court reports reveal, have led to more distressed homes for sale in the areas being developed by the company.
Beazer has accepted responsibility and agreed to provide immediate restitution worth $10 million to victims who have lost their homes to foreclosed properties listings. A total of $50 million have been offered by the company as a settlement fund. Homeowners who are eligible to receive money from the settlement are being helped by the Charlotte School of Law as part of its pro bono programs.
Since April 2010, students and faculty members from the law school have assisted homeowners in filling up restitution claims worth over $2.57 million. A total of 416 households have so far claimed monetary restitution from the settlement fund with the help of the law school.
According to participating students and teachers from the school, the funds will greatly help households in the city, particularly those who have been affected by the high number of foreclosures and distressed homes for sale in the area.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
Notice: In accordance with FTC guidelines, we state that RealEstateProArticles.com has financial relationships with some companies and may be compensated if consumers choose to buy, subscribe or take any action to a product or service via the links on our website. Occasionally, we receive free access to review a product or service. We do not accept compensation in exchange for a positive review. These reviews are strictly the opinions of the author.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites