Tim Dodge out of Columbus, OH was bamboozled into renting a house from a woman who did not own the home.
“I paid her $1,100 up front for the first two months rent,” Dodge said.
The scam was foiled when the owner who just filed for bankruptcy worked out a deal with his mortgage lender to prevent the house from being auctioned off. He arrived to find a unknown family living in his house. How awkward would that be to find a family living in your house? Anyhow, the two parties are working out a short-term rental agreement to allow the Dodges some time to find another place to rent. The fake woman landlord is still at large.
Source: Scammers Evolve, Use Craigslist To Pose As Landlords
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
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
From Realtor.org:
Fannie Mae announced Tuesday that it would allow qualified renters of foreclosed properties owned by a government-controlled mortgage company to stay in their homes.
Under the National Real Estate Owned (REO) Rental Policy, renters of homes acquired by Fannie Mae will be offered a new monthly lease at market-rate rent or if they desire, financial aid to help them move.
Source: Renters Can Stay in Foreclosed Home
