Scammers Using Foreclosures To Cheat Potential Renters

July 23rd, 2008

The crisis raging across the country means opportunities for many. Scammers are using foreclosures to cheat potential renters.

It is happening right across the country – the story of one family in Vallejo is just a repeat. A family is renting a house, which is not owned by the person who claims to be the landlord. It is like the footage from a film. This kind of thing is nothing new – it happened during the seventies when there had been plenty of foreclosures. The vultures swoop in when there is a surfeit of bank-owned units lying scattered around. The sheer number of units makes it impossible for realtors to keep individual track of them constantly.

The scammers first replace the locks, get rid of the For Sale signs and touch up the house with cosmetic changes. Then they lure in potential renters by taking deposit money, two months rent (the first and the last) and then vanish. They even list the property in the newspapers – confident that it will not attract of the concerned party. Such is the magic of sheer weight of foreclosure numbers for these cheats.

They offer to the renter what appears to be a nice deal. Agreements are signed and it is given to them then and there as soon as the cash changes hands. The people move in and set up home. It is only much later that the bank’s agents stumble upon them while going on their rounds. The tenants are surprised beyond limits; so too are the banks. Eviction becomes unavoidable.

Brian McPherson of Tipp Realty at Glen Cove says that from his experience he has learnt that these types of con artists hits several houses simultaneously, pockets as much dollars as they can and then exit the locality leaving the duped renters to face the consequences as best as they can. The results can be far more dangerous than just being evicted. By filling in forms the renters give away to the cheats sensitive information about their banks and assets. The most tragic thing is that most of those who have moved in as renters have suffered the fate of losing their houses to foreclosures. Vultures however, will always find a way to take their pickings whenever the opportunity arises.

There have been other instances when foreclosed borrowers themselves rent out their property to take in as much money as possible before surrendering to the inevitable.