Consumer complaint received 2025-07-09 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: Kiavi, Inc.
State: TX

Complaint narrative:
Background of the Program In XXXX of last year, I came across a " done-for-you '' real estate investment program in a XXXX group. The program advertised no down payment, house flipping, refinancing, and cash flow opportunities for people with good credit. It emphasized that no experience was necessary. 

In XXXX, the program sent me a property in XXXX, OH, listed at {$100000.00}, with an estimated {$79000.00} for rehab. They said a broker would fund the deal for me. The broker advised I would need to form an LLC, which I did, and I secured a hard money loan from Kiavi covering 85 % of the purchase price plus the {$79000.00} rehab credit. 

Property Acquisition and Initial Events XX/XX/XXXX I received a welcome email from the XXXX  after we discussed the rehab work. 

XX/XX/XXXX The property title was recorded under my single-member LLC. I had to chase down the title paperwork and ultimately only received a digital copy via email. Up to this point, everything seemed relatively normal. 

Discovery of Demolition Order and Bond Payment In early XXXX, I paid the XXXX  {$2500.00} to begin demolition. He then informed me that the property was on the City of XXXX demolition list, and he couldn't pull a building permit unless a bond was paid. He told me the city required {$18000.00} as a bond to stay demolition. 

I immediately contacted XXXX XXXX, the program host and seller. He denied any knowledge of the demolition order and claimed he had never sold a property with such a designation. He said he would contact the city on my behalfbut that led nowhere. 

To save the property, my husband drove from XXXX  to XXXX  and hand-delivered a {$24000.00} bond payment to the city. The next day, when he went to verify if the permits could now be pulled, the XXXX  angrily insisted that only he could handle the permits. He threatened to quit otherwise. Because the property was titled under my LLC, we reluctantly agreed. 

The XXXX  promised the rehab would be completed within XXXX months. 

Negligence and Financial Loss Over the next 10 months, I consistently checked in with the XXXXeach time I was told that progress was being made. But eventually, the City of XXXX issued a certificate to remove the stay of demolition because no building permits had ever been pulled. 

As a result of the XXXX  's negligence and misrepresentation, I forfeited the {$24000.00} bond. 

Worse still, he performed unpermitted, substandard work, ignored structural repairs like roofing and siding, and appeared focused only on drawing down rehab funds without ensuring code compliance. City inspectors have offered to be witnesses and have indicated an intent to pursue revocation of his license. 

Lack of Title Disclosures and Ongoing Issues I never received a title report or any formal closing documents in advance of signing. When I finally reached XXXX only responsive person from the title companyshe told me the documents I signed included a code violation disclosure, and by signing, I was considered aware. I never received those disclosures in a timely or proper manner. 

Others Affected & Potential Fraud Ive since found XXXX other individuals affected by the same program. XXXX also purchased properties in Ohio and have experienced nearly identical issues. 

In my case : XXXX XXXX appears to have issued a policy, but my understanding is they do not insure properties on a demo list. 

Kiavi has stated they do not lend on properties marked for demolition, yet they funded the loan. 

The after-repair value ( ARV ) appraised by Kiavi was unrealistically high, further suggesting misrepresentation.

Now, Kiavis loan is nearing maturity, and the property is in disrepair and non-compliant. 

Conclusion I strongly believe I was targeted by a coordinated scheme disguised as a real estate investment opportunity. The property was knowingly sold at an inflated price, with uninsurable and unfinanceable conditions concealed until it was too late. 

Please let me know if you need any supporting documentation or further details. I sincerely appreciate your time and assistance in reviewing this situation. 

Warm regards, XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation