Federal authorities on Wednesday (Dec. 20) sued Houston-area developer Colony Ridge, accusing it of luring Latino home buyers into seller-financed mortgages and setting them up to default and face foreclosure.
The developer of the subdivisions that cover about 33,000 acres of land about 30 miles north of Houston used Spanish videos to target prospective Latino buyers. Once a person visited the property, Colony Ridge allegedly used high-pressure sales tactics, required minimal down payments and extended loans without assessing a buyer's ability to repay or verifying their gross income.
