“We hope this is just one of many positive outcomes for the residents who were victims of this scam.”

Hangley Aronchick Segal & Pudlin has announced a settlement in favor of their client, a married couple and residents of a Port Richmond neighborhood, whose home was foreclosed upon after falling victim to a rent-to-own scam affecting hundreds of neighborhood residents.

In the suit, Hangley Aronchick alleged that the landlord and the client entered a lease-to-purchase agreement for a property that was in significant need of repair. The client, at their own expense, made the property habitable, and made their payments pursuant to the agreement. The landlord obtained a mortgage loan in connection with the client’s property and dozens of other properties, but the landlord never informed the lending bank about the lease-to-purchase agreements on several of the properties. The client’s ownership of the property was cast into doubt when the landlord defaulted on the mortgage loan, causing the bank to foreclose on the property and purchase it at a sheriff’s sale last year.

After filing a quiet title suit, pursuing discovery and fighting off a motion to stay the case, the Hangley Aronchick team successfully resolved the matter out of court, restoring title in the home back to their client.

“This whole experience has been very frustrating and at times frightening for our client, and we are thrilled with the restoration of the title to their home. They can finally put this harrowing ordeal behind them,” said Robert Ebby, Shareholder with Hangley Aronchick Segal & Pudlin.

“Our client was one couple out of hundreds of people who have been victimized,” said Dylan Steinberg, Associate with Hangley Aronchick Segal & Pudlin. “We hope this is just one of many positive outcomes for the residents who were taken advantage of.”

The Hangley Aronchick team included Stuart Ebby, Robert Ebby, David Scolnic, Adena Herskovitz, Alan Promer and Dylan Steinberg. The case was referred to Hangley Aronchick by Philadelphia VIP.

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