PROVIDENCE, R.I. (WPRI) — R.I. Attorney General Peter Neronha has filed a lawsuit against a real estate broker accused of orchestrating a so-called “foreclosure rescue” scheme.
Kyle Seyboth, owner of Seyboth Team Real Estate, allegedly tricked a Providence family into selling their home for significantly less than market value, according to a complaint obtained by 12 News.
The elderly homeowners, who Neronha said have lived at the same address for nearly 30 years, are Haitian immigrants with extremely limited English proficiency.
Neronha claimed Seyboth and his associates preyed upon the family after the homeowners defaulted on their mortgage in May 2023. The remaining payoff for their home, which has a market-value of $450,000, totaled more than $62,000, the complaint said.
He said one of Seyboth’s associates approached one of the homeowners nearly a month after they were notified of their impending foreclosure, asking how much she would be willing to sell it for.
“[The homeowner] responded that she would sell it for $400,000, if she were to sell it, and then asked [the associate] if she did reverse mortgages,” the complaint reads. “[The associate] answered ‘yes’ and gave [the homeowner] her business card, saying that someone would follow up.”