Freddie Mac, a quasi-government entity that finances mortgages, said it will begin renting out some foreclosed properties to their owners.
“Keeping foreclosed properties occupied and in better repair will support local property values and promote a faster recovery in the housing market,” said Freddie Mac Chief Executive David Moffett.
Fannie Mae, which announced similar plans earlier this month, said it has stopped about 20,000 foreclosure sales and halted 6,300 evictions of owners or renters this winter.
Under Freddie Mac’s new policy, tenants and former property owners need to demonstrate that they have enough income to pay the rental bill. Freddie Mac also said it would consider reinstating a mortgage for those borrowers who can qualify for a modified loan.
Washington-based Fannie Mae and Freddie Mac were taken over by the government in September after mounting mortgage losses put them in distress that was a prelude to the broader financial crisis that hit Wall Street last year.
Source: Freddie Mac to rent foreclosed properties
Fox News in Dallas covers the Morris Mosley incidents:
Video: Couple Caught in Rental Foreclosure Scam
Elk River Police in Minnesota investigated a man who was trying to rent an apartment from an apartment complex. He sent a check for $5,5oo and wanted the apartment complex to send any extra money from the check to a furniture company to cover his furniture expenses since he was coming from London. The man claimed he was from London, but they traced the call back to a Airport in Georgia.
The following names were used in the scam: Enger Paul, Charles Collins and Per Edward.
Source: New scam targets area apartment complexes
From Palms Spring, CA, a man by the name of Collins Jones is advertising other people’s rental properties on Craigslist. Collins claims to have been relocated to Nigeria for his job as a supervisor with Chevron. Don’t let him fool you for second - he is trying to scam you out of your security deposit and first months rent.
Source: Scam Artists Target Internet Home Listings
We have been covering several of these stories recently, and I just wanted to bring attention to this growing trend. Sometime ago, a clever scam artist decided that renting out foreclosed homes was a easy way of making some quick cash; nevertheless, the idea has caught on across the country. The most recent incident involves several scammers in Orange County, CA:
Alexander Braslavsky, 34, and Anthony Patrick Marshall, 38, pleaded guilty to grand theft last Sept. 24.
The defendants made full restitution to the victims before Christmas, but Vista Superior Court Judge Daniel Goldstein sentenced them to the maximum jail term under the plea agreement, said Deputy District Attorney Anna Winn.
Braslavsky and Marshall — who has a real estate license — posted ads on the craigslist Web site for five foreclosed homes in Carlsbad, Corona and Stanton and rented them out, the prosecutor said. (more…)
This is a very unusual case out of Dallas, TX. Morris Mosley, who is a preacher and ex-mayoral candidate, is accused of renting out foreclosed homes. Now, I consider myself an open-minded person, but read this quote:
“He took out a screwdriver out of his pocket and he said, “I had to wiggle the lock a bit. I have to open the door like this, so I can change the locks,’” she said.
Now, I was not there and I have no idea what he said when he did this, but wouldn’t you question why he is wiggling off a lock to get into the house?
Source: Former mayoral candidate faces new illegal renting charges
According to BusinessWeek, residential rents dropped in several major cities due to the decline in the demand for housing. People are losing money on their investments, cutting spending, and moving in with other family members in order to save cash. This is having an adverse affect on rental markets nationwide. Rental markets like New York City and the suburbs of New Jersey are drastically feeling the decline in demand for housing since the financial crisis exacerbated in 2008.
BusinessWeek.com worked with Axiometrics to come up with a list of 25 large metros where rent declines accelerated most at the end of 2008. In Salt Lake City, where the economy had been holding up better than most cities, effective rents (including landlord concessions) fell 2.3% in the fourth quarter compared with the previous quarter. By comparison, rents were climbing 3.3% in the fourth quarter of 2007. (more…)
From Realty Times, a new tenant was doing the landlord a favor by moving out an old refrigerator in order to make room for the new refrigerator. A friend of the landlord stopped by to help the new tenant move it. Upon moving the refrigerator, the new tenant lost his grip of the refrigerator and it landed on the friend’s foot. This resulted in a broken ankle, a trip to the hospital and surgery. The friend of the landlord sued the landlord for the medical costs. The court held out that there was an agency relationship between the landlord and tenant, which held the landlord responsible for the tenant’s action. The appellate court upheld the original verdict. Total medical costs were over $100,000.
So landlords, be careful what you ask your tenant to do because it just might just be worth it to do it yourself.
Source: Landlord May Be Liable for Tenant Who Does Work on the Premises by Bob Hunt
10) He or she is a Doctor or Professor that is living in the UK. (Good cover since Doctors and Professors are usually perceived to be honest and trustworthy individuals)
9) He or she offers to pay the whole years rent upfront. (How nice!)
8) He or she pays you by check and it is more than you agreed upon. (Hey, free money, right?)
7) He or she asks you to pay for furniture or shipping costs in a different state. (For some reason Tennessee is used for a lot of the scams)
6) He or she forgets what name they are using and starts switching it up in emails. (This happens more than you think) (more…)
In Rolla, Mo, a man identified as Dr. Gibert Kenny wanted to rent a property advertised by Floyd and Caroleen Ferrell of Realty Executives/Ferrell Associates. Dr. Kenny was out of country and wanted to pay the whole years rent upfront. They received the check for the entire years rent; however, the good Doctor wanted them to wire some of the money from the check via Western Union to pay for some furniture expenses in Tennessee.
Lets analyze this because we have all the key ingredients for the normal rental scam: fake check for upfront rent; wants money to be paid for furniture via Western Union; and the Doctor is out of country (probably somewhere in the UK).
If you have ever been a landlord, has a tenant EVER offered to pay the entire years rent upfront? (more…)
