One-stop shops send homeowners toward foreclosure

A high percentage of houses sold by New York City’s one-stop real estate shops, businesses that ease the home buying process by providing real estate salespeople, financing, inspections and home appraisal through one company, end up in foreclosure, according to data from real estate data company RealtyTrac. These all-in-one companies often purchase foreclosed homes to begin with and sell them to buyers in barely renovated condition. Gotham Gazette looks at several New York City-based one-stop shops that are now the subject of lawsuits, including Better Homes Depot and several companies controlled by Yaron Herscho. The Real Deal explored all-in-one real estate companies in the June 2008 issue.