A pattern emerges after every major storm: investors swoop in, offering to buy storm-damaged homes for cash. But what happens when those deals fall apart?

Several homeowners in Redington Beach are now grappling with that very scenario. They believed their properties were sold, only to learn, months later, that the buyers had backed out.

Now, they’re forced to start from scratch in a downturned market and are frustrated that the plan change wasn’t communicated sooner.

“I always dreamed of living on the water,” said a Redington Beach homeowner, Toray Leonard. That dream ended when Hurricane Helene ravaged her home.

“To walk in and find 4 to 5 feet of water, with everything destroyed—it was overwhelming,” she told WFLA.

With their home rendered uninhabitable, Leonard and her husband dipped into their retirement savings to buy a new house. They soon listed their damaged home and received multiple offers. One investor, Jason Matthews of 16 Redington Development, stood out by offering a higher price with no contingencies.

The contract called for a cash purchase with a closing date set for January 29.

“But the title company stopped communicating with us,” Leonard recalled.

One week before closing, Leonard said she was informed the deal was off. Matthews’ broker cited shifting market conditions. Other homeowners reported receiving revised offers—some at drastically reduced prices.

“Some people saw their offers slashed by 70%,” Leonard said.

While it’s not illegal to withdraw from a real estate deal, Leonard and others say Matthews’ long delay in pulling out cost them critical time—time they could have used to find new buyers before property values dropped.

WFLA’s attempts to reach Matthews were unsuccessful. Calls went unanswered, his voicemail was inactive, and messages sent through LinkedIn and his websites received no reply.

Leonard also said Matthews has yet to return the escrow deposit associated with their now-defunct contract.

“He wouldn’t even release the escrow money,” she said.

WFLA contacted the Town of Redington Beach for comment. Town attorney Robert Eschenfelder responded in writing:

“If this or any other company is engaging in such conduct during a time when many owners are struggling to make the best decision for themselves during a time of tragedy, where none of the options are ‘good’ and most involve financial and emotional cost, such conduct would be reprehensible.”

Though municipalities in Florida lack regulatory power over these transactions, Eschenfelder said affected homeowners can report such incidents to the Florida Attorney General’s Consumer Protection Division, which enforces the Florida Deceptive and Unfair Trade Practices Act.

So far, the town hasn’t received formal complaints related to the offers. However, Eschenfelder noted that Matthews is involved in other local issues, including a recently prosecuted code enforcement case tied to one of his construction sites. Code Enforcement has also issued two notices related to unregistered vacation rentals that he operates in town.

As for Leonard and her neighbors, they’re back at square one—searching for new buyers and still seeking accountability.

“We believe he should be held responsible,” Leonard said.

Follow the St. Pete-Clearwater Sun on Facebook, Instagram, Threads, Google, & X

(Image credit: Yahoo News)

PIE-Sun.com: local St. Pete-Clearwater news