Don't Lose Your Deposit! Prevent a Surprise Eviction Notice Before You Rent Any Property:
Please note that this is not a legal document and is purely for informational purposes. You should always consult an attorney before making any decisions.
Common Forms of Rental Fraud
Does the legal owner on your DepositShield report match the person/company you're renting from?
- Some unscrupulous "landlords" are renting out foreclosed homes they know have been abandoned by their original owners. In this scenario, the "landlord" offers the same property in multiple ads, collects deposits from multiple renters and skips out of town, never to be heard from again while multiple tenants fight over who has the right to move in.
- In some cases, the original owner of a foreclosed property will rent to an unsuspecting tenant until the mortgagor evicts them.
What Typically Happens:
- In both cases, tenants can lose their deposits and risk eviction from a Bank Trustee or an agent of the County Sheriff's Office or the new Owner in as little as 90 days.
- If the Legal Owner on your report is the name of a Bank or some other Institution, you're very likely going to rent or are living in a Bank-owned Foreclosure.
Some examples of pre-foreclosure notices
- Pre-foreclosure events can take the form of Voluntary Liens, Notice of Trustee Sales, etc. and could potentially result in a foreclosure/eviction scenario for the tenant.
- A very common form of a Voluntary Lien is a Lis Pendens. Many municipalities allow HOA's to attach a Lis Pendens to the owner's property which gives the authority to foreclose on a property if they choose to do so in order to collect monies due. This is rare but it is a risk that every Tenant should be aware of.
What Typically Happens
- Pre-foreclosure events involve a financial institution/organization announcing its intention to foreclose on a property because the owner is in serious default of their home loan or other debt tied to ownership of the property. It's a last ditch effort to collect monies due by notifying a city/county through public record. If the property owner doesn't make the loan on the property current, then a foreclosure event occurs and the bank takes control of the property by evicting the homeowner or any occupants without a valid rental agreement, often with law enforcement officials present.
A common example of renting a Foreclosed property
- Our report will enable you to determine if the name of the Legal Owner of any property you want to rent or are renting. If the name of the person or management company you are negotiating with does not match the Legal Owner on our report, a property could potentially be bank owned (foreclosed) or part of a rental fraud scheme!
Some examples of Involuntary LiensSearch for any involuntary lien events on your rental
What Typically Happens
- While most Involuntary Liens on your rental do not typically lead to a foreclosure/eviction scenario, they do reveal potential debt problems the landlord is experiencing beyond making late loan payments.
- An HOA can place a lien on a property in the form of an Involuntary Lien, as opposed to the more aggressive Lis Pendens, and does not lead to a potential foreclosure/eviction scenario.
- However, Mechanics Liens can potentially lead to a tenant being evicted if a repair-related debt on the owner's property is not made current. It is essentially a legal dispute between a contractor and the property owner on a debt owed and is accompanied by ligitation between the two parties.