September 14, 2022

NCLC and the North Carolina Justice Center filed a class action attacking a scheme by which used manufactured houses are sold to low-income families through a highly unfair contract-for-deed arrangement. Purchasers don’t receive title until they pay the total purchase price plus fees over 60 monthly installment payments, and they’re responsible for their own repairs, but if they are more than five days late on a single payment, Defendants treat them as “renters,” giving them no notice of default and right to cure, and instead bringing summary eviction actions, retaining the down payments and taking possession of the homes. The case was filed in state court and removed by defendants to federal court.