Friday, April 30, 2010

Rental scam

The craigslist rental scam has apparently hit the Quad Cities. A house is listed as available for rent on craigslist. The owner is out of town/out of the country. The owner wants you to send the money, and then he or she will send you keys. Apparently, some people have even received keys. Unfortunately, the keys did not fit the house. Because the owner is out of town/country, the potentials scammees, er, tenants cannot inspect the property.

Most people who live out of the country are going to have someone locally who will manage the property, so the fact that you need to send money to South Africa to get keys is a huge red flag. If there is no one in town to manage the property, who has been cutting the grass, who shoveled the sidewalks, who raked the leaves, who stopped by to make sure the pipes did not freeze this winter? Also, who in their right mind is going to rent a house they have not seen? Obviously, anyone who was serious about renting their house to someone would have arrangements in place to let potential tenants in the house to inspect it. Why would a reputable landlord want to rent to someone who was so desperate they would rent a house without seeing it? Another red flag: if the price is too good to be true, it probably is not true.

If you are still adamant that you want to rent this place, some suggestions. One way you might be able to flush out a scammer: Rather than send money to South Africa and hope you get keys back, you could suggest using a local escrow agent, such as an attorney. Tell the owner that you would deposit the money with the attorney and the owner should send the keys to the attorney. When the attorney has both the money from you and the keys from the owner, and you have had an opportunity to inspect the property, the keys would be delivered to you and the money forwarded to the owner. My guess is that if you suggest this, it will be the last you will hear from the "owner." If the individual is reputable, he or she should have no problem with an arrangement like this, since you are both protected.

Depending on where the property was located, there might be very detailed satellite and ground level photographs available at which can help you. Take a look at what is available, and try asking dumb questions of the "owner" to see if they verify what is on the maps and photos. For example, if the house does not have a pool, ask the if there is a pool, expressing how important it is that you have a pool. If there is a street level view (click on the little gold man at the top of the scale tool), you will even be able to tell what color the house is, how many trees, etc. Ask the owner and see if he or she knows some of these details. Any owner will know the color of their own house. Ask how many houses in the neighborhood, how close to the interstate, closest grocery store--things an owner would know and a scammer would not.

There are a couple things you can do check ownership, however this will only be useful if the scammer was not smart enough to find out the actual owner's name. You can check the following websites:

Some of the scammers are using houses which are for sale, which would be another red flag. Most (but not all) people selling their houses are not interested in renting them. You may be able to look up the property on to see if it is listed. There should be information to contact the listing agent who would know if the owner was trying to rent the property.

Be careful, even when following these suggestions. Scammers are very good at explaining things away.

Monday, April 5, 2010

Poltergeist Drywall?

Air conditioners failing-several times a year. Outlets that no longer work. Television sets failing. Plumbing leaks in the walls. Stereos failing. All of your electrical wiring and your silverware turns black. Odd "fire and brimstone" smells in your home. A poltergoost!? Could be, Neil. Or it could be your drywall has hydrogen sulfide (a/k/a hydrosulfuric acid) in it. Perhaps hundreds of thousands of homes in numerous states may need to have all of the drywall, electrical components and wiring, gas service piping, fire suppression sprinkler systems, smoke alarms and carbon monoxide alarms replaced. Not to mention all of your electronics and silver.

There are also people losing their homes to genius lenders because of this. Logically, when you have to gut your walls, electrical, gas service, and plumbing, you might need to crash somewhere else for a few weeks, no? Amazing, in a recession, many people cannot afford to pay the mortgage, pay for repairs, AND pay for another place to live while the work is done. Some lenders are already proceeding with foreclosure against these properties, even though the owners have tried to make arrangements with those lenders for some forebearance while repairs are made. Talk about toxic assets.

The only good news I could find in this story, and it ain't much, is that there are currently no reports of this drywall being sold in Illinois or Iowa.