Rhode Island Attorney General Peter F. Neronha has filed a lawsuit against local real estate broker for allegedly violating the state’s Unfair and Deceptive Trade Practices Act.
Neronha has accused Kyle Seyboth, founder of the Century 21-affiliated brokerage The Seyboth Team, and associated defendants with deceiving homeowners into executing a “foreclosure rescue” scheme that tricked Jean Marie and Marie Delva, a Haitian couple in Providence, into believing they were signing mortgage refinance papers when, in fact, they were executing paperwork for the sale of their home at far below the property’s market value.
Seyboth listed the Delvas’ home for sale for $450,000 in early July but has since agreed to take the home off the market. Nerhona is seeking civil penalties and injunctive relief, including voiding the sale and returning the home to the original owners.
“As alleged, the defendants deceived and took advantage of a Rhode Island family in danger of losing their home, preying on their financial desperation and limited knowledge of the English language,” said Neronha in a statement. “The alleged behavior exposes the depths to which some people will sink in order to turn a buck, robbing the Delvas of the place they called home for decades. And more broadly, it’s news to no one that we have a severe housing crisis on our hands, and this alleged behavior only exacerbates our housing problems, forcing families already in financial distress onto the streets.”
Seyboth has not publicly commented on the lawsuit.
Photo of Kyle Seyboth courtesy of The Seyboth Team
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I am not surprised. In fact, I’m surprised that more individuals, especially licensed people, are not being held accountable for such behavior. I see many suspicious transactions which result as “flips”. As a licensed real estate broker myself, I find this kind of behavior unacceptable whatsoever and shameful.
Why wouldn’t these guys settle this dispute with the seller?
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I’ve been working in the foreclosure field for over 20 years and I’m always very transparent with people as to the value of their house now, the amount of work it needs in dollars, what I’m going to sell it for, and what they’re going to get now. People leave themselves in situations or get into situations where houses transact at below market value for many reasons. In my business I have to buy a house for an amount that allows me to do a fair transaction, high quality work to renovate the house, and make an honest profit selling it. People often underestimate these costs. I’ve never been sued over a transaction in 20 years.
One more reason to learn the English language. Assimilation is not helped by having everything written in multiple languages.