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  • Geebo 8:00 am on July 10, 2023 Permalink | Reply
    Tags: , , real estate, , ,   

    Another family homeless after rental scam 

    By Greg Collier

    After mistakenly believing they had legitimately rented a home, a Florida family finds themselves homeless and forced to live on the streets. Tragically, stories like this are becoming far too common, as rental scammers continue to prey on families who are just looking for a roof over their heads.

    This family found a home for rent in their price range on Facebook Marketplace. The person who listed the home on Marketplace then directed the family to tour the home using an app called Rently. For those unfamiliar with Rently, it’s a service that allows prospective tenants to view and access rental properties without the need for a leasing agent or property manager to be present. Lockboxes are put on the doors of homes for rent or sale, and people who want to tour the home are given a combination to the lockbox, which has the keys in it.

    To get access to these homes, scammers will pose as prospective renters or buyers just so they can get the lockbox combination. Many realtors aren’t very good about changing the lockbox combinations, so scammers can use them repeatedly if need be.

    After the family toured the home and said they were interested in renting, the supposed landlord asked them for four months rent in advance, which came to an eye-watering $7000. Part of the payment was even asked for in eBay gift cards.

    After they moved in to the home, a sheriff’s deputy showed up at the door to inform the family they were trespassing and needed to leave.

    The home was available for rent, but was being rented out by a property management company.

    To add insult to injury, the family’s trailer that they were towing broke just a few feet after leaving the property.

    Just because an ad is listed on a multi-billion dollar platform like Facebook Marketplace doesn’t guarantee the listing is legitimate. Facebook was a haven for scammers long before Marketplace was implemented. Another red flag in this story is the landlord not being present during the home’s tour, or at any other time at all. And the biggest red flag was when partial payment was asked for in gift cards. As we are fond of saying, gift cards are the currency of scammers.

    We understand there are times when someone needs to find a new home quickly as possible. But no matter the reason, prospective renters should always take the time to research a property before paying any money. Research the going rate for rental homes in that area. If the home you’re looking at seems like a bargain, be suspicious. Do a web search on the address to see if other listings appear with different realtor names and rental prices, as scammers often copy legitimate real estate listings. And as always, you can check with the county’s tax assessor office or website to see who the true owner of the home really is.

     

  • Geebo 8:00 am on July 6, 2023 Permalink | Reply
    Tags: , real estate, ,   

    Are obituaries gold mines for scammers? 

    Are obituaries gold mines for scammers?

    By Greg Collier

    Recently, we’ve published a number of posts about a scam that involves funeral homes. In this scam, scammers comb the obituaries, looking for a notice that lists the funeral home being used. This allows the scammers to pose as the funeral home while trying to extort money from the deceased’s family. Now, it seems, that scammers are using the obituaries for a different scam.

    In Pennsylvania, a family was looking for a new home to rent. The family found a home for rent on Facebook Marketplace that they thought was quite the bargain at $800 a month. The home’s supposed owner said they had just accepted a job out of state, as to why they were renting the home. When the family asked to see inside the home, they were told they would need to send the money first, then they would be sent a key and a contract.

    This struck the family as odd, so they decided to do a web search on the homeowner. The name the family had been given belonged to a man who had just recently passed away. The home that was listed had belonged to the deceased man, but it was actually being put up for sale.

    The theory is scammers are using the properties of the recently deceased in order to avoid having their potential victims being warned away.

    While this family thankfully avoided being scammed, there could potentially be victims out there who lost money to this scam.

    When looking to rent a new home, you can never do enough research. Not only should you web search the home’s address to look for duplicate listings, also check the names of anyone involved who claims to be the landlord or homeowner. This is especially important when the rental price seems too good to be true.

     

  • Geebo 8:00 am on June 16, 2023 Permalink | Reply
    Tags: credit check, , real estate, ,   

    New type of rental scam changes the game 

    By Greg Collier

    We’re pretty sure when Craigslist first started allowing real estate listings, the rental scam was born. For any new readers, the rental scam is when a scammer will list a property online for rent which they don’t actually own. Scammers will copy a legitimate listing from a realtor of a property which is for sale, then post it for rent on unregulated marketplaces like Craigslist. The listing will have a below-market rent in order to lure in victims. Typically, these scammers will ask for either a security deposit or first month’d rent before disappearing with the victim’s money. These scams have cost victims thousands of dollars and have left many of them homeless.

    However, there is a new rental scam that’s occurring across the country, according to the Better Business Bureau. The BBB says these new scammers aren’t after renters’ money, but their personal information instead.

    The scammers are still using the same tricks to find a potential victim, but instead of trying to take their money, the scammers are having victims fill out phony credit checks. Victims are being led to a website that appears to be professional and legitimate, but once renters give their personal information, the scammers disappear with the victim’s identity.

    Now, it’s not unusual for landlords to perform credit checks before renting to a new tenant. However, there are ways to protect yourself from this scam, and many of them are the same ways to protect yourself from the typical rental scam.

    The first thing you should do is Google the address of the rental property. If there are duplicate listings and the landlord details don’t match, there’s a good chance you’ve discovered a scam listing. If the listing from a realtor’s website says the home is for sale, or the rent is more expensive, then the other listing is the phony one. And as always, you can always check with the county’s tax office or website to find out who the true landlord is.

     

  • Geebo 8:00 am on May 15, 2023 Permalink | Reply
    Tags: consumer alert, house flipping, houses for cash, real estate, we buy houses   

    Why you shouldn’t sell a home to house flippers 

    By Greg Collier

    Have you ever seen a billboard that advertises a company that will buy any home? Many of those advertisements belong to one company who has over 1000 franchises in the US. You may have even had to use their services. For example, say a family member passed on, and their house was left to you. The house had already fallen into a state of disrepair, and would cost too much money before you could even consider selling it. That’s where these house flipping companies come in. They promise to make the selling process quick and easy while paying you a fair price. However, the company might believe that promises were made to be broken.

    According to a recent report from ProPublica, the biggest of these house flipping companies has allegedly engaged in some shady business practices. ProPublica says that this company operates under the secret mantra of ‘find the pain’. The company accused of taking advantage of homeowners who may be suffering from mental declines, among other underhanded tactics to get homeowners to sign on the dotted line. And when some homeowners have changed their mind about the sale, they get sued by the company. While the company is not an outright scam, you may want to explore other options when trying to sell a home quickly.

    When selling such a property, be realistic about the value of your home. Price it too high, and you might turn off potential buyers. Price it too low, and you might not get the full value of the property. Consider getting a professional appraisal or consulting a real estate agent to determine the appropriate price.

    Also, consider being flexible with the closing date or accepting offers with contingencies, such as a home inspection or appraisal. This can make the sale process smoother and increase the likelihood of a quick sale.

    https://youtu.be/qfIB-i9Uf6o
     

  • Geebo 8:00 am on May 2, 2023 Permalink | Reply
    Tags: , , real estate, ,   

    Craigslist rental scam leads to identity theft 

    By Greg Collier

    When we discuss rental scams, we mostly discuss how victims lose money. However, there is another pitfall to the rental scam, and that’s having your identity stolen. That could end up costing a rental scam victim even more money and headaches after they lose money to the scammer.

    Typically, rental scams involve individuals who pretend to be landlords or property managers in order to deceive potential renters into paying upfront for a rental property that they have no right to rent out or don’t even own. The scam begins with an advertisement for a rental property that appears to be priced well below the market rate, which attracts the attention of potential renters. The scammer then persuades the victim to pay a security deposit or the first month’s rent before they have had the chance to view the property. Once the payment is made, the scammer may become unreachable or vanish altogether, leaving the victim without a rental property and without any recourse to recover their money.

    But what these stories sometimes fail to mention is the phony application process scammers make victims go through. To make the scam seem more legitimate, rental scammers will have their victims fill out rental applications that ask for the victim’s personal and financial information. Once the scammers have that information, they can obviously use it for more profitable crimes.

    For example, a woman in Connecticut found a rental home on Craigslist that was well within her budget. The rental scammer had her fill out an application that asked for all pertinent information they would need for identity theft. This included the victim’s Social Security number, driver’s license number, and tax history. Just a few days later, the scammer tried to open a credit card account in the victim’s name. The victim had to freeze her credit for a year, which comes with its own set of issues.

    When filling out a rental application, avoid giving out information that is not publicly available, such as your Social Security number, driver’s license number, and banking information.

    However, before you even get to that step, you should research the property first. The listing in the story was copied from a Zillow listing where the home was for sale., Information like this can be discerned just by doing a Google search for the property’s address. And you can always check the property records with the county.

    https://youtu.be/RkiYbFsrIWU
     

  • Geebo 8:00 am on April 28, 2023 Permalink | Reply
    Tags: real estate, ,   

    Just how bad are rental scams today? 

    By Greg Collier

    Ever since real estate listings have been online, there have been rental scammers. The rental scam in real estate is where scammers pose as landlords or property managers to trick prospective tenants into paying money upfront for a rental property that they do not own or have no authority to rent out.

    The scam usually begins with an advertisement for a property that is below market value, making it attractive to prospective renters. Once a victim expresses interest in the property, the scammer may request payment of a security deposit or the first month’s rent before the victim has seen the property. After the payment is made, the scammer may become difficult to reach or disappear entirely, leaving the victim without a rental property and out of money.

    The rental scam is also one of the more common scams we’ve discussed on this blog. Much like the jury duty scam, hardly a day goes by where we don’t see a rental scam story in the news. However, the scam may be much worse than we originally thought.

    For example, a homeless family in Atlanta thought they had found a home that they could afford. They paid $3000 to someone they thought was the property owner. The family was even given two sets of keys to the property. They weren’t staying in the home long before the real property manager showed up and allowed them 24 hours to vacate the premises.

    When a local news station spoke with the property management company, the company said it’s part of their job to visit their vacant properties that have been illegally occupied. The company also commented that this happens around 15 times a week. And that’s just one property management company in one city. Now just imagine how often situations like this happen not only across the country, but in your area as well.

    Thankfully, the property management company tries to help the victims they’ve encountered, but when someone has just lost all the money they had to scammers, it’s hard to imagine how much help can really be offered.

    To avoid falling victim to a rental scam, it is important to do your research and verify the legitimacy of the property and the person claiming to be the landlord or property manager. Always insist on viewing the property before making any payments, and be wary of any requests for personal or financial information that seem unnecessary or suspicious.

     

  • Geebo 8:00 am on April 10, 2023 Permalink | Reply
    Tags: , , real estate, ,   

    Secret Service warns about real estate scam 

    By Greg Collier

    Another scam that we’ve seen reported more in the news lately is the vacant lot scam. This scam typically involves scammers who try to sell a vacant lot that they do not actually own or have the right to sell.

    The process of the vacant lot scam involves scammers locating an unoccupied property without any construction and determining the owner, which can be accomplished through publicly accessible information. To appear as the genuine owner of the property, scammers will impersonate the owner and create fake identification documents. Using this guise, the scammers will enlist the help of a real estate agent to sell the property. In many cases, the scammers will not be physically present in the area where the property is located, and they may communicate solely through electronic means such as emails and text messages.

    The scam has become so prevalent, even the Secret Service is warning realtors nationwide to watch out for this scam.

    One realtor from Montana encountered this scam in a most unique way. The realtor also happens to own a vacant lot. Scammers called her office one day looking to sell a lot at a discounted price for a quick sale. When the realtor asked for the caller’s name, the scammer replied with the name of the realtor. That’s one way to tell you’re talking to a scammer.

    If someone was looking to buy a lot, they might consider investing in title insurance, which could protect them from losing money in a phony sale. Buyers should also make sure they’re dealing with the actual owner of the property. See if you can get the records of the property from the county tax office and make sure that the signatures match.

    If someone owns a vacant lot, whether they’re looking to sell or not, can take some precautions to protect their property. Make sure to regularly monitor your property and keep records of any changes or updates to it. This can help you quickly identify if someone is trying to sell or rent your property without your permission. Ensure that your property is properly secured. This can include installing fences, locks, or security cameras to deter trespassers.

     

  • Geebo 8:00 am on April 6, 2023 Permalink | Reply
    Tags: , , , real estate, , ,   

    Family loses $160K to home buying scam 

    By Greg Collier

    Lately, we’ve noticed an uptick in news stories about the business email compromise scam. While this is only anecdotal evidence, it can mean that scammers are getting better at it, or more people are coming forward about it. Either way, it seems we can expect to see increasing incidents of the BEC scam.

    For those who may not be familiar, the BEC scam is a scam that targets businesses and individuals who regularly perform wire transfers or make large payments via email. In this scam, the attackers use social engineering tactics to trick the victim into sending money to a fraudulent account instead of the intended recipient.

    In the context of buying a house, the BEC scam typically involves impersonating a real estate agent, lawyer, or title company representative. The attacker sends an email that appears to be from one of these legitimate sources and instructs the homebuyer to wire transfer the funds for the down payment or closing costs to a specified account. The email may seem convincing and use language that mimics that of the real estate professional, including branding and logos.

    A family from Ohio recently fell victim to this scam while closing on their home after the husband retired from the military. Since they were a military family, they are familiar with the home buying process. However, in Ohio, it’s required by law to wire any closing costs over $10,000, instead of paying by check. They received an email from who they thought was the title company, and followed the included instructions on where to wire the funds. The transfer was for $160,000. It wasn’t until the next day when the family discovered the title company wasn’t the one who requested the transfer.

    The family contacted their bank, and the wire transfer was stopped before going into the scammer’s account, but the bank is allegedly dragging their feet as far as issuing a refund to the family. This isn’t surprising considering the amount of bank scams we’ve seen where the banks refuse to issue refunds.

    The family was still able to close on their home, but not everyone has that luxury.

    To avoid falling victim to a BEC scam when buying a house, it is important to always verify payment instructions before sending any money. This can involve calling the real estate professional or company to confirm that the account details are correct. Additionally, it is wise to be cautious of emails that seem urgent or that request immediate wire transfers without sufficient verification.

     

  • Geebo 8:00 am on March 24, 2023 Permalink | Reply
    Tags: , , , real estate,   

    Forged deed costs man his home 

    Forged deed costs man his home

    By Greg Collier

    Almost two weeks ago, we brought you the story of a man who was conned into signing over to someone who sold the home out from under him. But what if we told you your house could be sold without you even signing anything? That’s precisely what happened to a man in New Orleans.

    Much like the man from our previous story, this man lived in the home with his mother. After she passed away, he started renovating his home. While he was putting money into home improvements, someone forged the deed to his home and sold the man’s house.

    This wasn’t just a simple case of forging one signature to get possession of the home, either. Not only did the scammer forge the homeowners name, but the names of a notary and several witnesses were also forged. Additionally, the notary’s stamp was forged as well.

    One might assume that since both the homeowner and notary attest their signatures were forged, the man would be getting the deed to his home returned. Unfortunately, that is not the case. The homeowner is in the middle of legal proceedings to have the ownership of his home returned to him, and the legal costs to do so are not cheap.

    This kind of title scam could happen anywhere. We wish we could say there was an ironclad way to protect yourself from such a scam, but it depends on where you live. Some of the Parishes in Louisiana have a program where if the Parish receives any documentation bearing the homeowner’s name appears in their offices about their property, the homeowner will receive an email alert about it. Several counties across the U.S. have this service also, but not every county does.

    If you’re concerned about being scammed like this, check to see if your county has a program like this. If they don’t, consider getting in touch with your county and recommend it to them.

     

  • Geebo 8:00 am on March 22, 2023 Permalink | Reply
    Tags: , real estate, ,   

    Home used in rental scam wasn’t even listed 

    By Greg Collier

    Typically, when we discuss a home that’s been used in a rental scam, that home is listed for sale or rent in a legitimate listing before it’s copied by scammers. That gives potential renters an opportunity to see if the home has multiple listings. That’s one of the best indicators that one of the listings is a scam. But what if the property isn’t listed anywhere first?

    That’s what happened to a couple from Tennessee who were getting ready to sell their home. The couple had already moved out, but were putting the finishing touches on their old home before selling it. One day, when they went to some work on the house, they found the locks had been changed and people were living there. The people living in the home thought they had rented the home from someone on Facebook Marketplace.

    The homeowners placed a sign on the property letting people know that the home wasn’t for rent. Even after getting the listing removed from Marketplace, it continued showing up in their listings.

    So, how did the scammer know to target this particular house? The report we read doesn’t say, but it could have been a number of things. It could have been anything from the scammer could have seen the homeowners moving out to the homeowners possibly mentioning their move on social media. Scammers are anything if not resourceful.

    For renters to avoid this scam, there are several steps you can take. Always check with the county’s tax office to find who the true owner of the home is. If the landlord is asking for payment through apps like Venmo or Cash App, they’re probably a scammer.

    As far as homeowners go, if you want to avoid people from being scammed and moving into your property, do what these homeowners did. Put a sign either on the property or in a window inside the home that says the property is not for rent. Also, consider installing some security cameras that you can view through your phone or computer at any time. This way, you can see who is approaching your property and why.

     

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