RentandLeaseHousing’s Blog

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.

The ads stated “Problem credit OK,” according to Winn.

This is just one of the many instances of foreclosed homes being rented out to unsuspecting renters.  Here are several more instances that we have covered:

Morris Mosley: Former Dallas Mayoral Candidate and Rental Scammer

Foreclosures Leading to Rental Housing Scams in Washington DC

So prospective renters, lets do some due diligence to make sure that we are not renting a foreclosed home from some scam artist.  There is not a easy way to find out if the home is a foreclosure, but here are some questions and things to check for :

1. Ask who owns the property and if you can get a copy of the public record?
2. Ask if the landlord is real estate professional; and if they are, who do they work for?
3. Check for instances of a pad lock or any unusual locks on the front door.
4. Ask a uninvolved Realtor if the property has been on a real estate multiple list or if they know if the house is for sale?  Usually there will be something in the multiple list about third party approval or bank owned.
   
5. Type the rental property address in a local real property data search to see who owns the property. For example, a prospective renter in Maryland can go to the state of Maryland’s real property search and type in the rental property address.
6. Ask the neighbors if anyone has lived in the home for sometime.
7. Look for overgrown shrubbery.
8. See if the landlord will stay at the property for any extended period of time.  Suggest that you need to see the property a couple of times before you make a decision.
9. Check to see how new the locks are on the home.
10. Never deal in cash!

Source: 2 Men Sentenced To 90 Days In Jail For Online Rental Scam