11 Investigates: Homebuyers get costly surprise

Home ownership is the American dream, but for some in Western Pennsylvania their journey to get there is more like a nightmare.

A company named Harbour Portfolio bought up homes for next to nothing during the housing crisis. But the company didn't do any work to repair them, and instead sold them off to families desperate to own homes.

The houses sit boarded up and with busted out windows, overgrown weeds and crumbling roofs. Promises of opportunity and home ownership sit rundown and dilapidated.

"My wife and were homeless, so we were going house to house. So this house fell into our lap," said Jermaine Massey.

Massey thought he was buying the home in McKeesport he now lives in, knowing it needed some work. But even though he has paid on time each month, and has done work to repair it, he doesn't actually own the home. Property records show Harbour Porfolio owns the property. 11 Investigates uncovered the property taxes on the building, which were due in March 2017, were just paid in September, even though Massey has paid the company in full.

"I thought when I pay into this escrow, it was going to be mine. It's not going to be mine," Massey said.

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The Philhowers in West Newton are in the same situation.

"We were first-time buyers, so we thought we were doing the right thing: stepping up and buying a home instead of renting. We thought we'd own something in due time," said Alex Philhower.

Both the Masseys and the Philhowers signed what's called a "contract for deed," which is different from a mortgage. With a typical mortgage, a new owner takes a loan from the bank. The owner's name is on the deed, while the bank has a lein on the house. That means if you miss payments you could face foreclosure, but not immediate eviction from the home. With a contract or deed, the original owner (in this case, Harbour Portfolio), stays on the deed, and the resident pays rent to them, often with high interest rates. Missing a single payment could mean immediate eviction.

"If you're late on a payment, they're very rude and send people out here to take pictures, try the door. It's very aggravating," said Dawn Philower.

But like the Philowers and Masseys, many families that sign a contract for deed do so because they are unable to get a conventional loan due to bad credit or other issues.

Contract for deed sales don't just exist in western Pennsylvania. Our sister stations found other Harbour Portfolio properties across the country, in Florida, Oklahoma, Georgia, Ohio and Tennessee. They confronted the owner of Harbour Portfolio, Chad Vose, in Dallas, where he lives in a million dollar home.

Vose didn't want to answer any questions, and while riding in an elevator, he repeatedly refused to acknowledge any problems and asked us to reach out to his attorney.

Harbour Portfolio is already facing several lawsuits calling the company predatory, and accusing it of targeting vulnerable people. There are no lawsuits filed against Harbour Portfolio in Pennsylvania.

If you have a contract with Harbour Portfolio and feel that you are being taken advantage of, you can contact the Pennsylvania's Attorney General's Office by going to its website, by calling 1-800-441-2555, or by emailing scams@attorneygeneral.gov.

Cox Media Group