About two months after Corrine Casanova accepted Evans’ offer, her son paid for an appraisal.
While David was initially unaware his mother had agreed to sell, he did know she was vulnerable and had tried to protect her. David’s father, before he passed away in 2014, warned David that Corrine’s condition was worse than it appeared — that she could fake it “real good for about five minutes” before symptoms of her dementia would become evident. By 2016, her health had deteriorated to the point that she needed full-time care.
The franchise owner who bought Swanson’s house said he “takes great care” when dealing with elderly people and would have let her out of the contract if she had asked. It is common for many HomeVestors franchises to file such lawsuits when owners try to cancel a sale, or to record a lis pendens or similar documents — termed “clouding a title” — as a way to tie an owner to a deal. ProPublica found more than 50 franchisees clouding titles or suing for breach of contract in more than a dozen states.
Real estate experts, however, say HomeVestors franchisees’ large volume of lawsuits and title notices is not only indicative of a predatory business practice, it’s a tacit acknowledgment that sellers often later learn of better options. Donald Cameron, owner of Hi-Land Properties, denied that clouding titles is a predatory practice and noted he often helps people with groceries or electric bills while he tries to buy their homes. The recorded contract is necessary to ward off other investors trying to buy the property. He said he sued the man who had fallen ill because he had advanced him $4,000. He also said he followed HomeVestors’ policy of involving the man’s adult son in the discussions.
Lawmakers have recognized that pressure and abusive tactics short of fraud are so common in some industries that a consumer needs more protection. In timeshare sales, for example, some states require a defined rescission period that allows a buyer to back out. A “free-look” period is built into buying annuities. Lemon laws for used cars are also common.But some states and cities have begun to enact regulations.
In August 2020, Evans pleaded guilty to two felony counts of attempted grand theft of real property. He received a suspended jail sentence, dropped his lawsuits against both victims and paid restitution. He was prohibited from “any transaction involving the purchase or sale of real estate” during his probation. Eventually, in accordance with California law, his conviction was expunged.