• Report: #1029032

Complaint Review: HOMEVESTORS

  • Submitted: Wed, April 30, 2003
  • Updated: Mon, December 08, 2008

  • Reported By:Denison Texas
HOMEVESTORS
3726 E. Highway 82 Gainesville, Texas U.S.A.

HOMEVESTORS - Redus And Company deceptive con artists home sellers from hell victimized many consumers ripoff Gainesville Texas

*UPDATE Employee: Vast Majority of HomeVestors Franchisees run a very respectable business

*UPDATE Employee: Vast Majority of HomeVestors Franchisees run a very respectable business

*UPDATE Employee: Vast Majority of HomeVestors Franchisees run a very respectable business

*UPDATE Employee: Vast Majority of HomeVestors Franchisees run a very respectable business

*Author of original report: Mr. & Mrs. Turney (the plaintiffs) won a judgement against the defendants, Tom & Sharon Redus, also d.b.a. Redus & Co., Inc. also d.b.a. "Homevestors" - franchise in Gainesville, TX

*Author of original report: Court is Still Going On - Reduses Also Sold their Gainesville "HOMEVESTORS"

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This company Tom S. & Sharon Redus, d.b.a.
HOMEVESTORS/Redus and Company, INC., Gainesville, TX.

are now being sued, at the present time, for the same thing they have done to MANY home buyers:...lying at the showing of the house. (this is new, that is new - when stuff doesn't even work !!); selling a "known" deficient house without disclosures; promising to fix things with the house (before closing) but never do; They have even stated to buyers, during the showing of the house that: "We are licensed real estate agents." (Texas Real Estate Commission has stated: "These people are NOT licensed in real estate, and if you have some proof that they are saying that...then we can prosecute them." (They cannot prosecute on an oral comment, evidentally.)

The sellers have even sold houses with black mold: that had been vacant for two years (because the previous owners HAD to move, due to serious medical complications due to the black mold.); another case involves them selling a house worth $ 0.00 - $20,000, for $58,000 when in FACT...the house needs $95,094.71 in repairs (so the house is in reality worth (-) $ 0.00 (the house would never be worth...what it would take to fix it.); The sellers, Redus and Company, Inc...are then getting the lending company, appraiser, and inspector...to go along with their dirty deeds (Payoffs involved ???)
The whole racket is what is known as: "Fraudulent Property Flipping". (See court case record below.)

Homevestors states to their franchise owners:

On the Homevestors website, (on the "Ken's Corner", which is an article put out by Ken D'Angelo...Homevestors' founder): Mr. D'Angelo stated THIS to the franchise owners:

"You don't have to repair it (the house) and it can be done as a flip. Now there's something you've never heard of before, I'll bet. You can sell as is and do the financing. You will have 0 closing costs."

*** NOTE: In most states (I know it's true in Texas): "In Texas, if a seller sells a house "as is", they must STILL disclose problems of the house, on the Texas Seller Disclosure statement."

If other consumers in the Texas (or other states) areas have been ripped off by this same company...please step forward.:

(This court case involves: selling a deficient house without disclosure, fraud, breach of contract - (This IS the mold house):

(XXX) vs. REDUS & COMPANY INC.

1Causel# 2002-11421-16 Status Filed

Court 16th Judicial District Court Type Accounts, Contracts, and Notes - District Clerk

Date Filed 11/12/2002

In the 16th Judicial District Court

Denton County, Texas

Cause No. 2002-11421-16


(XXX) VS. (Tom S. & Sharon Redus) REDUS & COMPANY INC


Filed on 11/12/2002

Case Type: Accounts, Contracts, and Notes - District Clerk

Court Costs Paid: $168.00 Due: $0.00

Current Status: Filed

Defendants

Defendant Attorneys

Redus & Company Inc

BY SERVING REGISTERED AGENT, TOM REDUS

5 RIDGE DRIVE

LAKE DALLAS, TX. 75056


(Attorney) Jester Jr, Tom D

P O BOX 280

DENTON, TX 76202

Plaintiffs

(XXX)


Attorneys

DENTON, TX. 76209 Hansen, Eric

101 S. WOODROW LANE, STE. B

DENTON TX 76205

(XXX - wife)


DENTON, TX. 76209 Hansen, Eric

101 S. WOODROW LANE, STE. B

DENTON TX 76205

Events and Orders of the Court

----------------------------

01/02/2003 DEFENDANT'S ORIGINAL ANSWER

REDUS & COMPANY INC 12/17/2002 CITATION RETURNED SERVED

TO REDUS AND COMPANY INC 12-14-02

11/12/2002 PLAINTIFF'S ORIGINAL PETITION

--------------------------

We have personally also filed complaints about these con artists...with the Texas Attorney General's Office, the F.B.I., the U. S. Justice Department, U. S. Senator Kay Bailey Hutchison, President Bush...and many other agencies.

All of these entities simply tell you: "contact HUD/FHA". What they don't realize is...HUD/FHA is "allowing these scenerios to happen...they, too, will not enforce their OWN rules, guidelines, policies, and procedures.

***** Which includes the HUD "Accountability to the Lender" which states:
"If problems arise after closing, that repairs were not done or that the house was overvalued, it will be up to the lender to either pay for the repairs or pay down the mortgage to the actual value of the house."

...."HUD issued mortgagee letters to lenders that reiterated its policy that lenders were equally responsible for the quality of appraisals. HUD's Deputy Assistant Secretary for Single-Family Housing also instructed HUD staff that in cases in which appraisers missed serious repair conditions or significantly overvalued properties, HUD should request that the lenders who selected the appraisers pay for the needed repairs or pay down the mortgages by the amounts the properties were overvalued. and...
The Deputy Assistant Secretary also indicated that the failure of a lender to voluntarily resolve the appraisal deficiencies raised by HUD would result in enforcement action against the lender, including probation and suspension."

----------------

During Fraudulent Property Flipping schemes, appraisers are "knowingly" overvaluing the house at an already "pre-determined amount" (this is also done because the lender threatens them with - "no more work, unless you do it", etc. - honest appraisers have stepped forward & told that this happens); using comparable houses (for appraising) in which they are not comparable at all (and some of the comparables are not even in the same city, as the house being sold !!! (but are in fact...10 miles away); the appraiser is not disclosing major deficiencies with the house;

Then...the crooked FHA inspector comes in...states all repairs have been done and that "the house meets HUD minimum standards"; he ALSO does not report the major deficiencies, and lets the house pass.

EVERYONE involves then lines their pockets with money. (The lender also gets money in their pocket...everytime a house is involved.)

The homebuyer, in turn...ends up with a very deficient house - all due to these fraudulent idiots who are involved in Fraudulent Property Flipping.

Then...half the attorneys around here are also involved because they won't take these cases, but they do say: "I won't take this case, because I have friends in FHA." (These attorneys are the ones who buy & resell real estate on the side.)

It's fraud and corruption from the bottom of the step of the ladder, all the way to the top. THAT is how these Fraudulent Property Flipping sellers are getting away with this crap.

Fraudulent Property Flipping is on the rise, and even though government agencies keep advertising "regulations to help the homebuyer (consumer)" - the fact is...NOONE is enforcing these regulations.


It's time that all consumers stand up and say "We aren't going to take it anymore. Throw the d**n crooks into prison, and throw away the key."

http://www.e-thepeople.org/a-national/petition/5144/view

I HOPE THESE CROOKED SELLERS ROT IN HELL...where is exactly where they belong. (Or have to live in a house with major deficiencies...for the rest of their life.)...which ever scenerio is worse. It's a toss-up.

Thank you,

Billie M. Teague

Billie
Denison, Texas
U.S.A.

This report was posted on Ripoff Report on 04/30/2003 12:30 AM and is a permanent record located here: http://www.ripoffreport.com/r/HOMEVESTORS/Gainesville-Texas-76240/HOMEVESTORS-Redus-And-Company-deceptive-con-artists-home-sellers-from-hell-victimized-ma-1029032. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 UPDATE Employee

Vast Majority of HomeVestors Franchisees run a very respectable business

AUTHOR: Voiceofreason - (U.S.A.)

These comments regarding the Redus office are disturbing to say the least. The Redus office has been closed for over 5 years now. As far as the comments about flipping on the website you are somewhat incorrect. The founder Ken D'Angelo (a man with an extremely positive and long standing reputation) was referring to selling homes to OTHER INVESTORS "AS IS" without doing repairs, not to the general public. While I am not minimizing any unfortunate dealings with this particular office it is important that people understand that each office is independantly owned and operated and the vast majority of Homevestors offices operate in a very professional manner. The dealings with one office should not be a reflection of the entire franchise network. I have been a HomeVestors Franchisee for over 10 years now and we have found the company as a whole to operate with a high level of integrtiy. I am sorry that you have had such a hard time. What did your inspector say about all those repair items? I did not see in your complaint any mention of this. I hope you had an inspection done, it's one of the most important things one must do when buying a home.
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#2 UPDATE Employee

Vast Majority of HomeVestors Franchisees run a very respectable business

AUTHOR: Voiceofreason - (U.S.A.)

These comments regarding the Redus office are disturbing to say the least. The Redus office has been closed for over 5 years now. As far as the comments about flipping on the website you are somewhat incorrect. The founder Ken D'Angelo (a man with an extremely positive and long standing reputation) was referring to selling homes to OTHER INVESTORS "AS IS" without doing repairs, not to the general public. While I am not minimizing any unfortunate dealings with this particular office it is important that people understand that each office is independantly owned and operated and the vast majority of Homevestors offices operate in a very professional manner. The dealings with one office should not be a reflection of the entire franchise network. I have been a HomeVestors Franchisee for over 10 years now and we have found the company as a whole to operate with a high level of integrtiy. I am sorry that you have had such a hard time. What did your inspector say about all those repair items? I did not see in your complaint any mention of this. I hope you had an inspection done, it's one of the most important things one must do when buying a home.
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#3 UPDATE Employee

Vast Majority of HomeVestors Franchisees run a very respectable business

AUTHOR: Voiceofreason - (U.S.A.)

These comments regarding the Redus office are disturbing to say the least. The Redus office has been closed for over 5 years now. As far as the comments about flipping on the website you are somewhat incorrect. The founder Ken D'Angelo (a man with an extremely positive and long standing reputation) was referring to selling homes to OTHER INVESTORS "AS IS" without doing repairs, not to the general public. While I am not minimizing any unfortunate dealings with this particular office it is important that people understand that each office is independantly owned and operated and the vast majority of Homevestors offices operate in a very professional manner. The dealings with one office should not be a reflection of the entire franchise network. I have been a HomeVestors Franchisee for over 10 years now and we have found the company as a whole to operate with a high level of integrtiy. I am sorry that you have had such a hard time. What did your inspector say about all those repair items? I did not see in your complaint any mention of this. I hope you had an inspection done, it's one of the most important things one must do when buying a home.
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#4 UPDATE Employee

Vast Majority of HomeVestors Franchisees run a very respectable business

AUTHOR: Voiceofreason - (U.S.A.)

These comments regarding the Redus office are disturbing to say the least. The Redus office has been closed for over 5 years now. As far as the comments about flipping on the website you are somewhat incorrect. The founder Ken D'Angelo (a man with an extremely positive and long standing reputation) was referring to selling homes to OTHER INVESTORS "AS IS" without doing repairs, not to the general public. While I am not minimizing any unfortunate dealings with this particular office it is important that people understand that each office is independantly owned and operated and the vast majority of Homevestors offices operate in a very professional manner. The dealings with one office should not be a reflection of the entire franchise network. I have been a HomeVestors Franchisee for over 10 years now and we have found the company as a whole to operate with a high level of integrtiy. I am sorry that you have had such a hard time. What did your inspector say about all those repair items? I did not see in your complaint any mention of this. I hope you had an inspection done, it's one of the most important things one must do when buying a home.
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#5 Author of original report

Mr. & Mrs. Turney (the plaintiffs) won a judgement against the defendants, Tom & Sharon Redus, also d.b.a. Redus & Co., Inc. also d.b.a. "Homevestors" - franchise in Gainesville, TX

AUTHOR: Billie - (U.S.A.)

Mr. & Mrs. Turney (the plaintiffs) won a judgement against the defendants, Tom & Sharon Redus, also d.b.a. Redus & Co., Inc. also d.b.a. "Homevestors" - franchise in Gainesville, TX:

REDUS, TOM 06/21/2005
PLAINTIFFS' AWARDED JUDGMENT AGAINST DEFENDANTS REDUS

REDUS, SHARON 06/21/2005
PLAINTIFFS' AWARDED JUDGMENT AGAINST DEFENDANTS REDUS

REDUS & COMPANY INC. 06/21/2005
PLAINTIFFS' AWARDED JUDGMENT AGAINST DEFENDANTS REDUS

-------
BEWARE IN OKLAHOMA:
Tom & Sharon Redus are back to selling houses again (where they now live, Oklahoma)
Do they intend to pay the "Judgement" in TX:

Redus, Sharon & Tom
RR 1 BOX 160A, STRATFORD OK 74872-9732
Phone: 580-759-8847

www.enidnews.com/localnews/local_story_307005823 - 30k - Cached - Similar pages

I FINANCE EZ CREDIT! Many Homes available in Oklahoma. Low Down, Low Payments.
Call 580-759-8847?

-----
Google cache of http://chickashanews.com/class/a7000.html as retrieved on Aug 6, 2005

Package of houses in Duncan, OK. Need to sell quick, 1 or all, 15 of 24 rented.
580-759-8847 or 940-736-8885


Phone Number (940) 736-8885
Phone Location: MUENSTER, TX
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#6 Author of original report

Court is Still Going On - Reduses Also Sold their Gainesville "HOMEVESTORS"

AUTHOR: Billie - (U.S.A.)

Homevestors, Inc. in Gainesville has now been sold by Tom & Sharon Redus ("Redus and Company, Inc.") to Mike Brendel, a Texas real estate broker, effective 9/12/03.

(Did they sell their business to hide their assets???
DID THEY REPORT TO THE COURT, that they sold their business on 09/12/2003?) -

"It is against the law to sell - or hide - your assets, due ONLY to the reason that you are being sued, or that you "contemplate" being sued.")

How does one sell a "franchise"?
(The franchise was owned by the Reduses ("franchisee"), but the "FRANCHISOR" was Homevestors.)
I was under the impression that one could not "re-sell" their Homevestors franchise, but maybe I am wrong about that.

Will these people open up another business, but under a "new" name? (Hope not !!!!)

----------------------------
COURT UPDATE - November 25, 2003:

You can view this site daily, for updates:
http://justice.dentoncounty.com/CivilSearch/civfrmd.htm
----------------------------

EDWARD AND DEBRA TURNEY vs. REDUS & COMPANY INC.
Cause # 2002-11421-16 Status Filed
Court 16th Judicial District Court Type Accounts, Contracts, and Notes - District Clerk
Date Filed 11/12/2002

In the 16th Judicial District Court Denton County, Texas Cause No. 2002-11421-16
EDWARD AND DEBRA TURNEY VS. REDUS & COMPANY INC
Filed on 11/12/2002 Case Type: Accounts, Contracts, and Notes - District Clerk Court Costs Paid: $222.00 Due: $0.00 Current Status: Filed

Defendants
Redus & Company Inc

Defendant Attorneys
Jester Jr, Tom D
P O BOX 280
DENTON, TX 76202

Defendants
Texas Farm Bureau Underwriters

Defendant Attorneys
Kimzey, M. Shane
910 LOUISIANA 39TH FL
ONE SHELL PLAZA
HOUSTON TX 77002-4995 Redus, Tom Redus, Sharon

Plaintiffs
Turney, Edward

Plaintiff Attorneys
Hansen, Erik
101 S. WOODROW LANE, STE. B
DENTON TX 76205

Plaintiffs
Turney, Debra


Plaintiff Attorneys
Hansen, Erik
101 S. WOODROW LANE, STE. B
DENTON TX 76205

EVENTS AND ORDERS OF THE COURT

11/13/2003 CERTIFICATE
REDUS AND COMPANY'S THIRD CERTIFICATE OF DISCOVERY
11/07/2003 RULE 11 AGREEMENT LETTER
10/31/2003 CITATION RETURNED SERVED TO SHARON REDUS 10-30-03
10/31/2003 CITATION RETURNED SERVED TO TOM REDUS 10-30-03
10/29/2003 THIRD AMENDED PLAINTIFFS' THIRD AMENDED PETITION
10/06/2003 SECOND AMENDED PLAINTIFFS' SECOND AMENDED PETITION
09/19/2003 Jury Trial Requested
09/19/2003 JURY DEMAND BY TEXAS FARM BUREAU UNDERWRITERS
09/15/2003 DEFENDANT'S ORIGINAL ANSWER TEXAS FARM BUREAU UNDERWRITERS
09/03/2003 CITATION RETURNED SERVED TEXAS FARM BUREAU UNDERWRITERS 8-28-03
08/20/2003 FIRST AMENDED PETITION PLAINTIFFS'
08/14/2003 AMENDED ORDER/NOTICE TO WITHHOLD INCOME FOR CHILD SUPPORT FEDERAL EMERGENCY MANAGEMENT A.
08/14/2003 NOTICE OF ADMINISTRATIVE WRIT OF WITHHOLDING
08/12/2003 SUBPOENA DUCES TECUM TRUMAN HARP
08/12/2003 SUBPOENA DUCES TECUM CAROLE HARP
07/25/2003 NOTICE OF SUBPOENA
07/25/2003 NOTICE OF SUBPOENA
07/02/2003 CERTIFICATE REDUS AND COMPANY'S SECOND CERTIFICATE OF DISCOVERY
06/06/2003 NOTICE OF SUBPONA
06/06/2003 NOTICE OF ORAL DEPOSITION OF TOM REDUS
06/05/2003 SUBPOENA DUCES TECUM
06/02/2003 CERTIFICATE REDUS & COMPANY'S FIRST CERTIFICATE OF DISCOVERY
01/02/2003 DEFENDANT'S ORIGINAL ANSWER REDUS & COMPANY INC
12/17/2002 CITATION RETURNED SERVED TO REDUS AND COMPANY INC 12-14-02
11/12/2002 PLAINTIFF'S ORIGINAL PETITION
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