Pennsylvania has filed a lawsuit against Sell House in 1 Hour for alleged false advertising over mortgage foreclosure help. | Shutterstock
HARRISBURG, Pa. (Legal Newsline) - Pennsylvania has filed a lawsuit against Sell House in 1 Hour, LLC for allegedly misleading consumers through its advertisements, said state Attorney General Kathleen Kane on Monday.
Christine Neubauer, the former principle of the Erie County business, was also named in the suit. The suit claims the advertisements didn't fully represent the services the company actually provided when customers contacted her business.
Some of the advertisements, which appeared in a number of areas including her website, Craigslist, and others, claimed the company could buy property “as is for cash,” Kane said. Some of the ads also said it could stop a foreclosure on a home, had no real estate agent fees and offered quick sales.
Kane's office investigated the claims and allegedly found that the company didn't provide those services, but instead switched customers to different services after they contacted the company. The business also allegedly didn't have required licenses to offer some of the specific services advertised.
Kane said in one example the company attempted to rent out the home of a customer who had signed over the title to the company after the homeowner was threatened with a foreclosure.
The suit is seeking $1,000 for each alleged violation of the state's Mortgage Licensing Act and Consumer Protection Law, and a $3,000 for each violation that was against a person 60 years or older.