NEW YORK ( TheStreet) -- Renter beware. It appears fraudsters are advertising foreclosed homes meant for sale as rentals on the Internet.
It was a foreclosed home owned by Freddie Mac and was never meant to be rented out. Freddie Mac notified Craigslist, which then pulled the ad.
Ferenczy says the agency is hearing of more reports of scamsters placing rental ads for foreclosed homes before they are sold. They lure would-be renters into providing personal financial information, not to mention advance rent deposits. Renters have no idea that the homes are not for rent until they move in and find the keys won't work. In some cases, the fraudster changes the locks and the renters move in, only to be evicted later by the foreclosure real estate listing agent and the local sheriff.Freddie Mac's fraud unit says families shopping for rentals should verify if the homes are actually for sale by driving by the homes to look for "for-sale" signs and calling up the real estate listing agent to confirm its status. Checking county land records also can confirm who owns the house. -- Written by Shanthi Bharatwaj in New York.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV