With foreclosure numbers as high as they are and the economy putting so many people out of work, a new and troubling breed of trespassers and con artists have surfaced. While “squatters” have always existed, their numbers and impact on real estate fraud is higher than ever right now.
The art of squatting is defined as a person who is occupying a vacant home with no actual ownership of it. These people often successfully manage to stay in a home for months without trouble from authorities by claiming that they have a right to be there and showing fake leases and paperwork to authorities.
In recent months an alarmingly high number of people and families have been caught doing just that. And not only in your average middle class neighborhoods, these scams are occuring in high end communities and even mansions.
These squatting scams are executed in a number of different ways. In one case an individual will gain access to a lockbox code on a property and simply open the front door and begin moving in. In another, a person may hire a locksmith to show up and change the locks on the property so either he can move in, or will sometimes even rent the place to other tennants. In this case, by passing himself off as a landlord, the individual is actually making money off a home that he actually has no legitimate ties to.
Some other problems that arise with squatting go as far as hacking into computer databases to remove listings of the homes they occupy in order to be able to stay for longer periods of time under the radar. Phony leases and other documents will also be produced in order to hold off authorities and keep others away from unraveling the scam. Utility theft is common as well, since the squatters may or may not be able to turn on power or gas with their false documents.
It can take months to get a squatter out of a home. With all the false information and the police forces fear of lawsuits, sometimes information is just not at their fingertips. Police are required to be sure that a crime has been commited before taking action or making arrest. While waiting around for the go ahead, squatters have more time to make cash from their tennants or to stay in the place for a bit longer.
Many neighborhoods around the country with high foreclosure rates have banded together in attempts to shed light on these squatters. They keep an eye on empty homes and make sure to know who the Realtors and lenders are that are involved with the property. That way they can report any activity to those who know what should actually be going on with the property.
If you are currently looking at renting a property, be sure to stay knowledgable about these scams. Here is some advice to keep you on the legal side of renting and ensure that you are not innocently becoming a squatter:
-Do your research: Make sure you know the person who is listing the house. You can run an internet search on him or her and see if anything bad comes up.
-Take a picture: If the person you are dealing with is a fraud they likely won’t want you to have them in any kind of records. Try to take a photo of them in the home while you are looking at it. That way, if it turns out to be a fraud you have some evidences as well.
-Keep an eye on cash deals: If the person will only deal in cash or cashier’s check be a bit skeptical, and you never want to do business with someone who you aren’t allowed to meet. If they leave keys for you and always say they are out of town it may be a red flag.
-Find their office: You don’t want to be signing papers on the hood of a car or at the place in question. If this person is an actual landlord or property manager they will have some kind of professional facility that you can see.
Lastly, if it sounds too good to be true, it probably is. Since these squatters are not paying any bills or mortgages on the property, they are not very picky about price. Everything you give them goes straight into their pockets (and hopefully one day to court fees after they get caught,) so make sure that you aren’t being fooled out of your money.
If you have any questions about a specific property or some kind of deal you think may be a scam, give us a call at Occasio Realty today! 480.699.1820.
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