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Beware of Rental Scam Using Foreclosures

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    Beware of Rental Scam Using Foreclosures

    May 30, 2011

    JACKSONVILLE, Fla. -- Pamela Lewis has few words to describe what happened. "These last few days (have been) hell, excuse my language, because I am scared to leave," she said.

    Her nightmare began in August when she rented a house - which was not actually authorized by the owner to be rented. Now she is afraid to leave her home because she doesn't know what she'd return to find.

    After searching Craigslist, she found a two-story house near Morse Avenue on Jacksonville's Westside. "They were here on the property working," said Lewis.

    After making contact with the person she thought was the property owner, Lewis said a week later she signed a lease with James Loen to rent the property for $950 a month.

    She said that Loen told her he was the landlord. September 2010, Lewis moved in.

    But in May, eight months later, a man showed up at her front door, and told her he was the owner, he didn't know who she was and that she needed to move out.

    "He gave me a 24-hour notice, stuck it on my door. The cops seen it and said this is illegal he can't do this, he typed it up and signed it," said Lewis.

    Records at the property appraiser's office identified the owner as Damien Compo. "That's who he said he was and he wants me out," she said.

    Lewis said since this ordeal began the breakers from her A/C units are missing and there is damage to the window screen.

    On Your Side put her in contact with Erica Shaffor, an attorney with Three Rivers Legal Service. Shaffor said even if a tenant signs a fake lease with a phony landlord, the tenant has rights. "The tenant cannot just be thrown out by the alleged owner," said Shaffor.

    Shaffor said the property owner has to file for an 'ejectment.' She said Lewis had every reason to believe her lease was legal.

    "In a lot of the cases...this is happening is with foreclosed properties," she said.

    We checked county court records and found the house was in foreclosure, but this month that foreclosure lawsuit was "dismissed without prejudice for failure to prosecute."

    Lewis said now that she knows she was scammed, she's in the process of finding a new home, but said she can't move as quickly as the property owner wants her to move.

    "You know, we are both victims in this," said Lewis.

    Property owner Damien Compo said he was overseas and just returned to find someone in his home.

    "There was a property manager, but I lost touch. I will go to court; I want to do it the right way," said Compo.

    Compo said he wants to sell the house in a short sale.

    How do you protect yourself from becoming a victim like Lewis:

    It is simple: Search the property appraiser's website to find the property owner, then search the clerk of courts website to see if the property is in a foreclosure lawsuit.

    First Coast News

    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."

    #2
    Almost happened to me! Renters need to be smart(er) and check out the owners when they are involved in a private part transaction! Unless you're going through a real estate agency (reputable, with offices, and a license!) you need to do your homework before ever renting... especially from Craigs List or other "free" services. There are just too many scams, especially in Florida.

    There was one man in Florida that was leasing a good number of properties that he didn't own. He just changed the locks and rented them out. I don't know what happened to the prosecution, but the state's attorney was really having trouble pinning something on him. His defense... people need homes so he rented out abandoned foreclosure properties!.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      As much as I hated paying half the real estate agent fee, after reading this, I am glad that I did. And given that it was the agency that I originally bought my house through, I know that they are reputable and have been around a long time.

      Comment


        #4
        This is good to know as we'll be looking to rent a property probably starting in August. We've been looking through Craigslist to get an idea of what to expect for a realistic rent for months and have noticed a lot of the scammers will post a low price for a pretty nice property. Then my husband will check it on Zillow and see it's a scam pretty quickly.

        What's truly scary for us is we're both self-employed and I've been looking for decent paying work with zero success, so we have no clue what our chances will be for renting a house at all. We might be stuck in a two bedroom apartment and leasing a storage unit to get through the BK when we finally file this Fall. All we know is not to bother with anyone insisting on a credit check. Our credit is so screwed, we have variable income, just multiple things going against us unfortunately. Ugh.

        Comment


          #5
          In today's world, one does not do anything without some sort of background check before they do any sort of financial transaction, hire someone to do work, etc. You can't trust anyone anymore - that's just the way the world has become....
          _________________________________________
          Filed 5 Year Chapter 13: April 2002
          Early Buy-Out: April 2006
          Discharge: August 2006

          "A credit card is a snake in your pocket"

          Comment


            #6
            Originally posted by justbroke View Post
            There was one man in Florida that was leasing a good number of properties that he didn't own. He just changed the locks and rented them out. I don't know what happened to the prosecution, but the state's attorney was really having trouble pinning something on him.
            Funny how some people have a knack for getting away with obviously illegal activities.
            Filed Chapter 7 July 2010
            Attended 341 September 2010
            Discharged November 2010 Closed November 2010

            Comment


              #7
              Originally posted by Resigned2BK View Post
              This is good to know as we'll be looking to rent a property probably starting in August. We've been looking through Craigslist to get an idea of what to expect for a realistic rent for months and have noticed a lot of the scammers will post a low price for a pretty nice property. Then my husband will check it on Zillow and see it's a scam pretty quickly.

              What's truly scary for us is we're both self-employed and I've been looking for decent paying work with zero success, so we have no clue what our chances will be for renting a house at all. We might be stuck in a two bedroom apartment and leasing a storage unit to get through the BK when we finally file this Fall. All we know is not to bother with anyone insisting on a credit check. Our credit is so screwed, we have variable income, just multiple things going against us unfortunately. Ugh.
              Resigned, don't "resign" yourself to just Craigslist. We are moving to North Carolina soon, and I e-mailed a few different realtors (they list rentals on the realtor.com site there), asking what the chances were. We have 3 houses starting into foreclosure (no NOD yet) and cc, all 6 moths no pay ....they all said they would do an application, and it would be up to the individual homeowner what they wanted to do. I assumed if the rental was with a realtor, they were going to property manage it as well, but that doesn't seem to be the case. So give the realtors a try, maybe one will work with you. Even if they don't list rentals on their realtor.com, they still handle them. Also try Trulia. Good luck!

              Comment

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