Bank Foreclosures Can Be Used For Rent to Own Scams

Bank foreclosures can be used for rent to own scams. This was evident in Florida, wherein a man managed to dupe two women into believing that he owned a home and was renting it to them with the option of owning it later. However, in reality the home that this man was touting was one of the many bank foreclosures in Florida. His technique is very common in rent to own scams.

The modus operandi of such rent to own scams is fairly simple. An individual will spot some bank foreclosures, choose the right ones and place an advert on craigslist or other website for a rent to own property. When interested renters start showing up, the individual simply asks them to take a tour of the unlocked property. Once the renter likes the property, the individual meets the renter and takes an advance for the first month, the second month or even both.

In the situation described above, the renter became skeptical while paying the second half of the money to the man which is when she pulled out of the deal. She received a check for the money that she had already paid which, not surprisingly, was for an account already closed. Further scrutiny later revealed that the home from a bank foreclosures listing had already been rented by the culprit to another woman.