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Dec 11, 2008 -- Crooks posing as bogus landlords and renting foreclosures
RIP-OFF ALERT: If you're among the roughly 1 in 3 Americans who is a renter, you need to be aware of a new scam in the housing market.
The Washington Post reports that criminals are going to foreclosed properties and changing the locks at the houses. They post ads about a house for rent online or in newspaper classifieds, and then play landlord when you go to look at the property. Then they'll collect a deposit -- and sometimes the first month of rent -- before giving you the keys and telling you to move in.
You may live there for days or even months before the bank wises up and evicts you as a trespasser or a squatter. It's perfectly within the bank's right to do so -- even though the whole scenario only took place because of their incompetence in managing REO (real-estate owned) property.
What telltale signs can you look for to avoid getting ripped off? You definitely want to know where the supposed landlord or real estate agent showing you the house has his or her office. In some cases, you may even want to jot down their license plate number. Just be sure to have some verifiable information about who they are and where they do business.
In non-judicial foreclosure states, there is no paperwork documenting the real owner of the property. That creates a legal loophole big enough for Mack truck, as Clark says, and it can easily be exploited by crooks engaged in this scam.
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What others are saying
Instead of Foreclosure - Add a Renter
Just about any house can be modified temporarily to accommodate a renter. College students can be good renters. Friends who are currently renters may be looking for less expensive digs in this economy.
The ability to pay a mortgage can be drastically changed when an additional $500 or more in rent income is available to pay a portion of the mortgage.
Some counties may have restrictions. But, which is worse, fighting the restriction if it ever comes up as an issue or losing your home.
Safety is of course an issue. Be careful.
Welcome to the U.S.S.A.
Neighborhoods in California have been experiencing this for a while now and some are even encouraging squatters. It turns out that having a house occupied, even illegally, is better than letting it sit vacant. Vacant houses become targets for vandals who often strip it bare and make it uninhabitable. The banks would rather that not happen and since foreclosure is no longer a viable option (politically incorrect these days), they just look the other way and hope for the best.
LOL - is this a great country or what?
Foreclosure notices to home occupants!!
I was renting 10 years ago from a woman who STOPPED paying the mortgage and the home eventually went into foreclosure.
There was a myraid of letters in my mail box (I lived their 3 total years) from law firms addressed to the owner. KNOWING THAT HOME RENTALS MAY GO INTO FORECLOSURE - - THE TAX ACCESSOR, CITY, ETC, ETC. SHOULD ALSO SEND MAIL ADDRESSED TO: Owner Name and THE CURRENT OCCUPANT. THE CURRENT OCCUPANT would at least be in the know before its too late to save your personal property from theft and drive by theft.
My point is many homes are indeed rented out and the actaul owner my not be there or better yet the OFFICIAL MAIL RECIPIENT.
Also, I would've had some advance notice before my very valuable personal property was set out on the lawn in an affluent Norcross neighborhood. Worst of all the crew working with the sheriff to remove the contents STOLE my jewelry, a registered gun and imported liquor!!!
My neighbor called me FORTUNATELY to alert me that my home was being emptied and she did not see me??
In addition to ensuring that you are renting from the actual owner, ensure that: 1) you actually sent payments to the mortgage company. Make the arrangement up front with the home owner. If the home owner is uncooperative - MOVE ON - NO DEAL! 2) know the actual monthly note amount. You may only be paying a portion (the owner does no disclose the full amount) thus causing deliquent payments and then it forcloses 3) MORE IMPORTANTLY * * THE MAIL IS ADDRESSED TO CURRENT OCCUPANTS - BY THE CITY, BANK ETC. THIS WILL ALLOW THE RENTER OCCUPANT AN OPPORTUNITY TO MAKE ARRANGEMENTS BEFORE THE PROPERTY IS SEIZED.
I never opened the mail for the owner. I sent it along for her to open/address.
I would however, open mail addressed to CURRENT OCCUPANT!!
Most counties have websites where you can search the property records to see who owns the house and in some parts of the country it even shows what bank "owns" it as well. If the landlord claims to own it, ask for I.D. and see if the names match up.
