How Foreclosure Rental Scams Happen & 4 Things You Can Do to Protect Yourself from Them
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We’ve covered this topic on this blog before. But with summer here and the kids being out of school, many families who’ve lost their home to foreclosure – or are about to — are moving. So, we thought we’d cover this again just to make you aware in case you missed our last post on foreclosure rental scams.
But, don’t get caught up in another foreclosure nightmare – a foreclosure rental scam.
It’s so easy to find a rental home these days. All you have to do is get on a website like Craigslist or Backpage and peruse the “For Rent” sections. You can search by price, location, or even amenities.
Then, you meet with the homeowner or property manager, run a credit check, sign a lease, and make your first deposit. But what if your dream rental home becomes a nightmare? It’s happening to an increasing number of people.
You probably know that tenancy comes with a whole host of issues – you can get stuck with a lousy landlord or a great one. But the rise of foreclosures has brought about this type of rental nightmare.
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Many cases are occurring in Florida, which is too bad, since the state has open property records that anyone can look up.
How Foreclosure Rental Scams Happen
When a home goes into foreclosure and becomes vacant, it’s prone to theft, damage, mold, and other problems. Some unscrupulous “landlords” are taking over these empty homes and illegally renting them out to innocent people.
One may pose as a homeowner who is trying to rent out his or her own property, but without having any legal claims on the home. The fake owner doesn’t tell the prospective tenant that the home is actually in the middle of a foreclosure (or is foreclosed upon).
What happens next is that the home is repossessed by the lender, or the real homeowner returns and demands that the tenant leave immediately. It can be a huge mess for everyone since the tenant actually doesn’t have to leave the premises right away, but will if the homeowner files for an ejectment.
This is something that can be easily avoided. Following are four ways how.
4 Things You Can Do to Protect Yourself from Foreclosure Rental Scams
Research County Websites: One way to protect yourself from these types of rental scams is to do your research. Go to your county’s property appraiser website and type in the address of the rental home. It will tell you the name of the owner.
Then, go to the county’s clerk of courts website and find out if the home is free and clear or has a pending foreclosure. If something doesn’t feel right, don’t sign anything and don’t put down any money.
Call a Realtor: If you don’t know how to do the above, call a realtor (almost everyone one knows of at least one, or someone who knows one). Ask them to look up the information for you. They can do it very quickly because it’s part of their job to know stuff like this.
Ask Neighbors: Go back to the dwelling you’re thinking about renting without the agent there. Ask neighbors about the property – eg, do they know who the last owners are/were; do they know what’s going on with the property; was it a foreclosure; why/when did the last occupants leave, etc. This can solidify/refute any info you may have been told by an “agent.”
Consult an Attorney: Have an attorney look over a lease if you are still concerned, or only rent through established agencies or homeowner’s associations. Pay with checks only (never, ever in cash — ever), and keep records of everything.
You Have Rights, Even if You Have Been the Victim of a Foreclosure Rental Scam
The tenant cannot just be thrown out by the alleged owner,” says an attorney with a Florida legal services agency, “even if a tenant signs a fake lease with a phony landlord . . .
Perhaps the most important tip dispensed here is to remember that property ownership is a matter of public record. Anyone can look up who owns a particular property at any time. So do your due diligence to avoid being drawn into this type of rent scam.
Related Posts
Foreclosure Scams: How to Avoid Being Ripped Off by “Foreclosure Rescue” Companies
Foreclosure Lawyer: Need One? How Not to Get Ripped Off & Choose the Best One
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Copyright © 2011 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.
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