Foreclosed home sales in US to come under closer scrutiny

New York

LAWMAKERS are pressing the nation's housing regulator over the sale of thousands of foreclosed houses to investment firms that have pitched the promise of homeownership to people unable to get a traditional mortgage.

Some local authorities and regulators are taking legal action against several of these firms, accusing them of engaging in predatory business practices by reselling these often run-down houses "as is" through rent-to-own and other seller-financed transactions, sometimes known as contracts for deed.