Providence couple accuses real estate broker of 'foreclosure rescue' scheme

Lawsuit claims broker tricked elderly homeowners into selling home for less than market value

Published on Feb. 11, 2026

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An elderly Providence couple has filed a lawsuit against a Rhode Island real estate broker, Kyle Seyboth, accusing him of orchestrating a 'foreclosure rescue' scheme. The lawsuit claims Seyboth and his associates tricked the Haitian immigrant homeowners, Jean Marie and Marie Delva, into selling their home for significantly less than its $400,000 market value after they defaulted on their mortgage.

Why it matters

This case highlights concerns about predatory real estate practices targeting vulnerable homeowners, especially those with limited English proficiency, who may be facing foreclosure. It also raises questions about oversight and enforcement of laws meant to protect consumers from deceptive 'foreclosure rescue' schemes.

The details

According to the lawsuit, Seyboth and his associates approached the Delvas after they defaulted on their mortgage, offering to help them refinance and keep their home. However, the lawsuit alleges the Delvas were tricked into signing documents that transferred ownership of their home to one of Seyboth's real estate firms, Preferred Property Solutions, for just $100,000. The Delvas claim they thought they were refinancing, not selling their home, and were not provided interpretation services despite their limited English proficiency.

  • In May 2023, the Delvas defaulted on their mortgage.
  • Nearly a month after the foreclosure notice, an associate of Seyboth approached Marie Delva outside her home.
  • A few days later, another associate texted the Delvas' daughter proposing a plan to add their names to the title, pay off the balance, and then transfer sole ownership back to the Delvas.

The players

Kyle Seyboth

Owner of Seyboth Team Real Estate, the real estate broker accused of orchestrating the 'foreclosure rescue' scheme.

Jean Marie and Marie Delva

An elderly Providence couple who are Haitian immigrants with limited English proficiency and have lived in their home for nearly 30 years.

Preferred Property Solutions

One of Seyboth's real estate firms that the lawsuit claims the Delvas' home was transferred to.

Red Balloon Capital

Another one of Seyboth's real estate firms that the Delvas continued making payments to, believing they had refinanced their mortgage.

Peter Neronha

Rhode Island Attorney General who previously filed a lawsuit on behalf of the Delvas accusing Seyboth and his associates of violating the Deceptive Trade Practices Act.

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What they’re saying

“They are perpetrating a fraud and have unjustly defamed [Seyboth]. The Delvas lied to each other, they lied to [Neronha] and then they lied in Superior Court. Now it would seem they intend to take their lies to federal court.”

— Nicholas Hemond, Attorney for Kyle Seyboth (WPRI)

What’s next

The Delvas are asking the court to void the sale of their property altogether and are seeking damages and a trial by jury.

The takeaway

This case highlights the need for stronger consumer protections and oversight to prevent predatory real estate practices that target vulnerable homeowners, especially those with limited English proficiency who may be facing foreclosure. It underscores the importance of providing interpretation services and ensuring homeowners fully understand any agreements they sign.