Justice Dept. Files Lawsuit Against Colony Ridge for Targeting Hispanic Home Buyers
The Justice Department has filed a lawsuit against a Texas developer, Colony Ridge, alleging that the company targeted Hispanic residents by selling them subpar, unfinished homes with hidden costs in hopes of reselling the properties after the buyers defaulted. The developer, which also provided home-financing loans, allegedly exploited language barriers and used misleading ads on platforms like TikTok to trap buyers into purchasing unfinished properties. Many of the homes were in flood-prone areas, forcing buyers to spend additional money. Nearly 1 in 4 Colony Ridge homeowners ended up in foreclosure, with a default rate over 10 times the national average. The lawsuit seeks compensation for victims of the scheme.