The Foreclosure Business has always been business, and yes I know this is America, but where is the ethics. I work with distressed homeowners, and have recently begin placing those homeowners in rentals once the homeowner short sale there property or unfortunately loose there property to foreclosure. I think it's important for those that are realtors to make the public aware of the foreclosure, loan modification and short sale scams out there. There are particular scams effecting renters. There are a few that I am going to list that actually effects the homeowner.
These are all scams that have not made it to the forefront yet. Not common knowledge. I am also creating a website foreclosure-rentals.com and foreclosure-rentals.net just to help homeowners and renters find properties to rent.
Room For Rent Scam
Person rents a home from unsuspecting homeowner while property is in foreclosure. While property is in foreclosure, person places rooms for rent on craigslist or in paper and rents out each room for 500 to 700 a piece while paying the homeowner 5 to 6 hundred a month for the property. The person then puts a renter in charge and collects the rent.
Cash for Keys - Lender Scam
Person finds homeowner two or three weeks away from foreclosure, offers to pay homeowner 100 or 200 bucks to enter in 12 month lease, homeowner signs lease even though he knows the property is going to auction soon, the individual then waits with lease in hand until property forecloses and realtor approaches the property, individual pops up and informs the REO realtor that he has a 12 month lease and attends on occupying property. The bank then gives the "renter" cash for the keys and release the lease.
There are a variety of scams going around with renters and homeowners in foreclosure. I will be posting more on foreclosure-rentals.com
If you know of any more scams going on, please feel free to post them in the comment section. We need to have these out in the opens so people have the information.
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