The dark side of Orlando Foreclosures. While some people see foreclosures and REO properties as a gold mine, others see the damage it causes to many families.
This blog isnt about the families that were foreclosed on but the people in the middle, hurt by the deceitful people still out to make a quick buck. The innocent people who think that they are simple getting a good deal because people are struggling and will take less for rent.
This weekend I had to handle the dark side of Foreclosures. A young couple with 3 kids and one on the way are occupying a house that is now owned by the bank. They rented the home from the previous home owners less then 2 weeks ago, happy with the home and the monthly fee. They paid first and last months rent upfront and even some past due monies owed to the water company. There were some red flags in this whole scenario but the main thing is. The previous owner was no longer the owner and has no right to the house or to rent the home.
Now these tenants are approached by me the rep for the bank who now owns the home, that they have just been scammed by the previous owner and must vacate in less then 30 days. If they do so peacefully we can do something for them, if they dont they can be flat out evicted and quickly. Beware of scammers out there. Simply checking the tax records wont help, the banks name doesnt always appear that quickly. You could do a record search and see the chain of issues which might tip you off that something isnt right.
It's always important to have a professional on your side from the Realtor who helps you buy and sell real estate to the Property Management company who ensures a smooth rental process.
Heather Joubran, GRI, NRBA, CLHMS, CDPE
RE/MAX Central Realty
www.HeatherTheRealtor.com (407) 810-6304
Specializing in First Time Home Buyers, Short Sales, Bank Owned Real Estate, REO & Foreclosure Properties
Servicing Real Estate Needs in: Lake Mary, Longwood, Winter Springs, Sanford, Altamonte Springs, Oviedo, Orlando, Downtown Orlando, Thornton Park, College Park, Winter Park, Maitland, Windermere, UCF, Lake Nona, Baldwin Park, Apopka, Ocoee & Winter Garden
That is such a shame, I feel sorry for that poor family that was scammed. Good post for renters to beware of situations like this.
Great article Heather. There was a similar story this week in my area where a family unknowingly rented a home only last month without the knowledge that the owner was going into foreclosure. They are now in the same situation with having 30 days to find a new home and vacate the premises.
Good work.
SAD VERY SAD,
I am sorry to hear of this happening out there.
There ought to be a law against it.
Good luck in 2009
Karina
Heather this is so unfortunate! Just lately I've noticed the number of listings advertised as short sales that are also being offered as rentals... If the property owner is behind on his payments and a foreclosure is inminent, why are they also trying to rent? It makes no sense to me and I often wonder about the agents that participate on these deals...
Zilkia I have to agree if a property is in short sale status the rent is most likely not going to bring the property current or do much of anything to stop the foreclosure. There will be more issues to come as these foreclosures heat up.
It's sad that the potential renters need to prescreen the owner or the scam owner.
Featured @ Club Chaos
This is heart breaking and I hope the bank will have compassion.
I have not seen this first hand, but know it happens. Shame on them.
I am doing an eviction on Friday. I offered the guys $500 2 months ago to move. Then I offered them $1500 30 days ago to move. Both times they said they would get back with me. Well Friday is their moving day and they aren't getting paid anything because the sheriff is doing the moving. Too bad. It is my least favorite part of doing REOs.
Just FYI, the Florida legislature has 3 bills pending that address landlords having to notify tenants if a foreclosure or short sale occurs or is forseeable in the next 12 months. Penalty would be a $10,000 fine for non-compliance. Of course, if the landlord is in foreclosure how does anyone expect to collect the 10K??
Heather the Realtor, Oh this is a story that we here too many times. It's an awful one.
I think that in DC even if the property is taken over by the bank, the tenants are protected for the term of their lease.
Man! I am hearing of and seeing this happening MANY times recently. It's sad. It's difficult to find out who owns a property b/c of the delay in updating public records. It's terrible for tenants, who are paying money (sometimes unwisely). (sigh.)
Wow that is horrible for that poor family. There is a lot of misinformation out there as well. I have people contact me all the time who are looking for "distressed home owners that would do a lease purchase with them". They are so focused on the immediate deal/savings that they can't see how bad of an option this is.
Rob I have to agree with you, you cant get blood out of a turnup but then again what they are doing should be punishable. Maybe a ton of community service hours. We need free labor and they need to be punished win win.
Lisa - You can see the chain of whats going on in public records but most people only check deed and not the chain of whats going on. Had these people of done taht they would have known.
Christine - I have to agree many people are very short sighted.
Heather, that's awful! I just sold a family who was kicked out of their rentalproperty because the owner allowed it to be forclosed on while keeping their rent. I hope these bad people have karma catch up to them one day.
Hi Heather great post, Sad situation, But this is happening around the Orlando area a lot. These horror stories are just awful and it really makes me sick to my stomach, but one thing I do know"YOU REAP WHAT YOU SOW."
Callie