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Jul 20, 2008 10:00 am US/Pacific
Foreclosure Rental Scam Strikes Bay Area
VALLEJO (CBS 5 / KCBS) ―
An old scam targeting renters looking for a new place to live has resurfaced, with Bay Area neighborhoods hit hard by foreclosures as the prime targets.
Once popular in the 1970s, tenants are conned into renting an apartment from a fraudlent landlord, only to discover later that the "landlord" doesn't even own the building.
The scam leaves renters homeless and broke as the con artist will get the first and last month's rent in cash, and is gone before the victims realize that their rental agreement was really phony.
"An unscrupulous party that begins to realize there is a tremendous number of vacant properties will scope out 3 or 4 vacant properties," said Vallejo real estate agent Brian McPhearson who has personally dealt with victims of the scam.
The scam artists typically gain access to the vacant homes by breaking in, changing the locks, getting rid of the 'For Sale' signs and then putting the properties on the market for rent.
McPhearson contended the best way to find out if a landlord is legitimate is to check the rental agency's license with the California Department of Real Estate, or confirm the property owner's name at the county recorder's office.
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