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Real estate scams hit Cape Region

Police blame Craig's List, local culprit for bilking consumers
July 25, 2017

Two recent housing scams in the Cape Region have police warning residents to beware.

“Consumers should not go to questionable websites and give anyone money,” said Master Cpl. Gary Fournier of the Delaware State Police. “If it sounds like too good of a deal to be true, it probably is.”

In the first scam, Fournier said police were called to a Rehoboth-area home in The Landing when neighbors noticed people moving into a home at 10 p.m. July 2. The people had paid $500 and signed a lease for the home on Kings Creek Road, agreeing to pay up to $2,000. They told police that an area woman wrote up the lease after telling them she finds people homes that have been foreclosed, Fournier said.

The home was empty and scheduled for Sussex County Sheriff's Sale July 18; no one was supposed to rent or buy the property, Fournier said.

No charges have been filed, but Fournier said the investigation is ongoing.

“The people were under the impression that they could move in,” he said.

A neighbor who wishes to remain anonymous said three adults and a pregnant teenager were inside the home when she first saw them. A 2-year-old and an 11-month-old child were left in a car parked outside the home, she said.

“They had a U-Haul, and I thought it was weird for this to be going on at 10 p.m. at night,” she said. “They had bought their own doorknobs and put them on after popping the lock off the old doorknob and removing it.”

The next day, she said, she found the old doorknob thrown in the yard.

The neighbor said the house had been owned by an elderly couple. The wife died, and the husband was in poor health and had moved away, she said.

Sussex County Sheriff's Office said the property was bought for $195,000 by WSFS, the bank that held the mortgage. The property may eventually be sold by a realtor, an official said.

Rental rip-off

On July 16, police say two families showed up at the same time in Dewey Beach for a week's vacation after finding the rental on Craig's List.

“When they arrived, they realized they had been scammed,” Fournier said.

A housekeeper was cleaning the home on Bayberry Lane when the families simultaneously arrived. Police checked with the homeowner who confirmed that he did not rent his home to either family, Fournier said.

Both families – one from New Jersey and the other from Pennsylvania – said they saw the property advertised on Craig's List, and they sent money to out-of-state banks to rent it.

The family from New Jersey paid a total of $1,800 for a week, sending money to a Bank of America account out of Little Rock, Ark., and also a Chase Bank, whose address was not provided.

“They were told that the homeowner would meet them at the home with a key,” Fournier said.

When they realized they had been scammed, he said, they stayed with family in the area.

The family from Pennsylvania paid $1,750 for a week's stay and sent the money to a Wells Fargo account in San Francisco.

“You need to watch who you are sending your money to,” Fournier said.

The Pennsylvania family, however, had a happy ending. Karen Falk, director of marketing and communication for Jack Lingo Realtor, said the housekeeper was instrumental in helping the family find another location. Karen said the housekeeper contacted Bryce Lingo, who went to work trying to find the family a place to stay.

“There's not a lot available this time of year, but the rental office was able to find an open house in-town Rehoboth,” Falk said. “It was a busy day, but they all came together and found the property.”

Lingo spoke with the homeowner and explained the family's predicament, and the homeowner agreed to rent the home for the reduced price of $1,000 for the week.

Falk said she communicated with the family throughout their ordeal, and they were thankful that their vacation was saved.

“They realized that there are good people in this world,” she said. “It started out as a negative experience, but it ended up being a positive one.”

Attorney General’s Office offers helps

The Consumer Protection Unit of the Delaware Department of Justice warns Delawareans during this peak vacation season to be careful when they are looking for a vacation rental.  The scammers operating rental scam schemes find legitimate rental postings and capture the information and photos of the property, and then list it on Craigslist or other online advertising platforms.  Unsuspecting consumers looking for a good deal on a vacation rental find the bogus posting, send a deposit, and receive confirmation of their rental only to arrive and find other people in the home, are unable to gain access, or are otherwise turned away from the property they believed they had rented.
 
Rental home scams are also occurring with regard to longer term residential rentals. Scammers steal information from legitimate for-rent postings, and troll neighborhoods for vacant, abandoned and foreclosed homes. Prospective tenants in these scenarios may be shown the property before moving in as the scammers have changed the locks to unlawfully gain access. The scammers will collect a security deposit and first month’s rent, and may even provide keys and allow the consumer to move into the property. Typically, only when the true owner or a neighbor notices, will the tenant be aware they have been conned. The scammers in these scenarios typically require that monthly rent be paid in cash and will often appear in-person at the residence to collect the rent.
 
Officials say all consumers should be diligent before entering into any type of lease for a rental property or providing any deposit or rental payment by taking these steps first:
 
·   Consider working with a licensed realtor or property management company

·   If using an online search engine or website, research whether the property appears on other websites or listing platforms and make contact with the listing agents to determine which is the legitimate advertisement

·   Research who the true owner of the property is by doing a parcel search online: In Delaware, one can search New Castle County properties at http://www3.nccde.org/parcel/search/;  Kent County properties at  http://kent400.co.kent.de.us/PropInfo/PIName.HTM, and Sussex County properties at, https://sussexcountyde.gov/zoning-and-sales-information

·   Carefully review the posting, advertisement or lease for misspellings and grammatical errors

·   If you are looking at a rental through an online listing site, you should familiarize yourself with the site's policies for detecting and dealing with potentially fraudulent listings

·  Never pay any security deposit or rental payment in cash – always use a check, money order or credit card – and demand a receipt

·  Demand a written lease in advance, that includes the identification and contact information of the landlord, as well as identification of the bank where your security deposit will be held

·  When possible, request a walk-through before agreeing to rent or paying any deposit

·  Talk to neighbors to learn more about the property and the owners—be cautious of properties with a recently deceased owner or foreclosure

·  If you meet the person claiming to be the landlord, request to see their credentials, such as a business card or realtor’s license, and identification; you should also make note of the make and model of their car and the license plate number

Consumers who believe they may have been scammed should contact their local police department and file a report. They can also call the Attorney General’s toll-free Consumer Hotline at 1-800-220-5424 or email the Consumer Protection Unit of DOJ at consumer.protection@state.de.us.  If the listing was posted on an online platform, such as Craigslist, the consumer should also file complaints with the online platform and with federal law enforcement at www.ic3.gov
 

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