The state of Texas has filed a lawsuit against Colony Ridge, accusing it of carrying out a scheme to sell real estate while misleading buyers about the condition of the property.
“Colony Ridge, Inc. (CRI), Colony Ridge Development, LLC (CR Development), Colony Ridge BV, LLC (CR Bella Vista), Colony Ridge Land, LLC (CR Land), T-Rex Management, Inc. (T -Rex) (collectively, “Colony Ridge”) and its owner, John Harris, has built a vast, northeast Houston We have built a community. ” suit Claim.
The complaint describes Colony Ridge’s “toxic business model” in which its revenue cycle of buying and selling real estate is perpetuated by high rates of default.
“Colony Ridge’s business model is premised on funneling land buyers through foreclosure factories. That means Colony Ridge is targeting foreign-born consumers and Hispanics with limited or no access to credit. consumers with the promise of cheap, ready-to-build land and loans without income verification,” the lawsuit alleges.
“And Colony Ridge lies in a variety of ways about the conditions that buyers will experience on the land. Many of those conditions, once discovered, make it difficult for buyers to actually own the land. As a result, Colony Ridge, realizing that the buyer could not make meaningful use of the land, defaulted on the land loan at an exorbitant interest rate, foreclosed on the buyer, and left the buyer with nothing. Repossess the land without losing it, then turn around and sell the same land again for another. “In the interests of Colony Ridge and its unscrupulous business model, consumers can, at best, avoid foreclosure.” only to grapple with unexpected financial burdens for years in order to do so,” the complaint alleges.
“According to information and belief, CR Land regularly buys back land in foreclosure and resells it at the following prices. higher price. In fact, CR Land often resells seized land to the government. exactly the same consumer At a significantly higher price. The more foreclosures CR Land initiates, the more likely it is that the foreclosures will obtain free and improved residential land that is profitable. Therefore, Colony Ridge’s business model encourages foreclosures,” the lawsuit alleges.
They also claim that Colony Ridge requires buyers to join a property owners association but does not use the funds to improve the neighborhood.
“After Colony Ridge sells a property to a buyer, Colony Ridge makes additional profits by imposing mandatory membership fees on its affiliated property owners association (POA). ” and imposes a mandatory annual fee of approximately $120 per member,” the Texas lawsuit declares. “However, contrary to how legitimate property owners associations operate, Colony Ridge has failed to spend the millions of dollars in POA dues it collects to improve and benefit consumers’ neighborhoods. In fact, the defendants have done nothing to promote the welfare of their dues-paying members, who live in abandoned piles of trash, vacant lots, dilapidated homes, or improvised housing. Masu.”
according to press release“Colony Ridge is in flagrant violation of Texas law,” Texas Attorney General Ken Paxton said in a statement. ” he said.
Last year, when I answered a question, letter From a Republican member of the House of Representatives from Paxton, the One Star State. I have written “This development appears to be attracting and enabling illegal alien settlement in Texas, causing distress to nearby cities and school districts,” said a Colony Ridge reporter.
The federal government targeted Colony Ridge in a lawsuit filed last year.
“The Department of Justice and the Consumer Financial Protection Bureau (CFPB) today charged a Texas-based company with operating an illegal land sales scheme that targeted tens of thousands of Hispanic borrowers with false statements and predatory loans. “We have filed a lawsuit against developer and financier Colony Ridge,” the company announced in December. press release state. “A lawsuit filed in federal district court alleges that Colony Ridge sold flood-prone land without water, sewer, or electrical infrastructure to unsuspecting households, bankrupted the company by making loans it could not afford, and They claim that they are pushing the situation further.”
In a statement, Harris called the lawsuit “baseless, outrageous and inflammatory.” report show.
Blaze Originals documentaryThe true story of Colony Ridge” delves into the topic of Colony Ridge.
Watch the documentary “The Real Story of Colony Ridge” by Blaze Originals.
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