Oct 1, 2008 11:55 pm US/Pacific
Foreclosed Homeowners Rent Out Homes In New Scam
SAN LEANDRO (CBS 5) ―
The troubled economy has given rise to a cruel new scam. Some Bay Area property owners facing foreclosure are renting out their homes and ripping off their tenants.
Renetta Gremillion was scrambling to get everything she owns into a box and out of a rented home on Via Arriba in San Lorenzo. She is being evicted, not because she didn't make the $1,600 monthly rent.
"What can I do? That was my first question. I've never had to go through anything like this," Gremillion said. "I've never been scared, so scared in my life."
On the contrary, her landlord collected the rent but defaulted on the mortgage.
"I'm paying it to him," Gremillion said, "I don't know what he's doing with it."
The Oakland offices of the housing advocacy group ACORN have received numerous calls from scam victims.
"We average at least three people who come in who are in this situation as we speak," said Larry Hynson of the Oakland ACORN office.
Usually the landlord does not say they are in foreclosure. The renter only finds out once utilities are shut off and the bank comes in to seize the property.
A similar situation occurred in an apartment building on East 23rd Street in East Oakland.
"We don't have water for two days," said resident Alejandra Martinez. The tenants in all five apartment units regularly paid rent, sometimes for years.
"Yeah, I'm really scared because I have my kids," Martinez said.
As for Renetta Gremillion, she even tracked down her landlord. "He has not answered any of my calls since this has been going on," she said.
CBS 5 attempted to track him down, but he could not be found.
If you are facing this kind of landlord, Hynson of ACORN gave this advice. "First and foremost do not continue to pay rent," Hynson said, "because you'll need that money to find a new location or a new residence.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Click Here For July 4th Fireworks Guide
CBS 5 CrimeWatch
Click to enlarge
Stumble It!
Reporting
