I am among many victims of Penny Foreclosures and their sister company All City Construction. I purchased a home in Indiana, it was advertised as a multi-family dwelling that needed rehab. Of course, their sister company, All City Construction could do the work for me. Between purchase and rehab, I paid $40,000 for this property that was advertised to comp out easily at $75,000. They were real responsive during the purchase and rehab but no where to be found when after rehab (for which Penny said they weren't involved in) the property was found to be uninhabitable due to structural damage not addressed in rehab or ever disclosed.
To take the cake, the property is in a ghetto and has virtually no resale value. I am told by three different real estate agents that in its best days it would never had comped out at $75,000.00; lucky to get $5,000.00 if someone is willing to pay upwards to $15,000.00 to make this dump habitable. To take the cake, Penny Foreclosures sold this property as a multi-family dwelling when the zoning on the property had been changed to single family many years prior in 2003. The realtors have shared stories of many other victims calling them trying to sell the garbage they bought from Penny Foreclosures, I personally know of at least 2 others duped like me. We are all out of town buyers and were duped by their promise of professionalism.
Check every single thing out before buying from penny foreclosures and allowing their sister company all city construction to perform rehab... You will likely get ripped off!!!
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