The OC scam part 2

[The OC Scam]

OK sorry I was in shock yesterday when finding out what has happened to our living situation. Apparently I didn’t explain well so let me try again.

Our landlords inform us we had to move out after 4 years of renting because they had a family member that needed the home for personal reasons. They gave us 5 months to look for a new home because we have 3 kids and we never were late on the rent. So we were in no rush but after looking for a few months we found it difficult to find a home that fit our needs.

Then in November 2006 we met this nice couple on criagslist. Let’s just say their names are Paul and Stacy. They were listing an old craftsman’s 3 br home with a back house for $2200 dollars a month. The deposit was first and last months rent. I called the number listed and they called me back a couple of hours later and we agreed to meet that afternoon.

Everything happened very fast we fell in love with the house and our kids could stay in the same school and it is still very close to my job. We signed the papers that same day and wrote the checks. Paul and Stacy were very eager to have us move in right away so moved in that weekend. The house had been vacant since being purchase in August 2006 (which shows on zillow being sold for $675,000). My credit is excellent and our past rental history was excellent so it made sense that this couple were excited to find us as renters – right? It was such a great deal so we too were very excited.

Here where it gets complicated! This woman Linda, her sister and a lawyer show up yesterday claiming that this home is in Linda’s name and the home is in default on the loan and about to go into foreclosure. She had documents showing the mortgage default notices etc. Linda says Paul is her ex-boyfriend and Stacy is his new girl friend a real-estate agent. Linda is a young college student that has two children with Paul. Paul convinced Linda to signed papers last year on an investment he said he was making for their children. Then he left her and the kids a few months later. The claim is that Paul and Stacy bought over the summer 7 homes totaling 5.1 million with 0 down interest only loans in Linda’s name. The lawyer says the homes were appraised very high after being purchased and Paul and Stacy took out loans for as much as they could.

Then the renters come in to play. The seven homes are being rented and the money is being sent to Paul and Stacy at their p.o. box for the last six months. Paula and Stacy of course are not making the house payments. Some of the renters paid for the entire year of the lease. If the 7 homes are rented for 15,000 a month then they just made $90k in six months not bad money huh? Linda is gathering evidence with her to lawyer for this fraud. They came to get copies of the lease agreements and any documents we signed with Paula and Stacy.

Mean while my real-estate agent friend is looking into this for us. So far all we have found out for sure is the property tax of $5,000 is owed since September 2006.

If this all turns out to be true we have to decide what to do since our rent was just paid? We have to find a new home and come-up with the deposit again. Linda said she doesn’t know what she’s going to happen ethier since the home is overvalued in order to sale fast.

I can’t see this home being sold very fast since there is 3 homes for sale on our street for less than owed on this home. If this is true then I wonder how many more of these situations are out there. This market could get very ugly!

[Happy renter]

Thank you for your true story since I am about to look for a new place. There are so many terrible greedy immoral people out there. We really have to be very careful. I feel sorry for you losing your deposit. If Linda was really being betrayed by his ex-boyfirend (kids dad), I feel very sorry for her also.
However, I don’t know if you can trust Linda. If the houses are all under Linda’s name, how could Paul rent them out and collect the rent? Linda has lawyer and sister. It seems like she has legal support. Are the houses under linda’s own name or linda & Paul’s names? It’s possible that they all are a whole team. But it’s only my guess.
Anyway, I wish all the vitims will be compensated and all the criminals will be punished by the justice. I believe in Karma. Good luck to all good people in the world, including you.

[PerryChase]

Thanks for sharing your story. We need more people to come forward with such stories so the public is aware of what’s going on.

[The OC Scam]

I was just talking to my neighbor who sold his house in Yorba Linda for $800K the couple bought the house 0 down in one of their grandparents name. The grandparent found out and they are sueing their grand child.

Anyways my Neighbor said we have to put our money into a escrow account and keep track of our deposits in the amount of the rent due on the contract. Also Linda is to provide a legal document stating she never agreed as the owner to the terms of the lease contract. This will be our situation until this is all settled. We are weary of Linda’s story she could have been part of this whole thing and now wants out? I’m seeking a real-estate lawyer. Thanks

[Anonymous]

Does anyone have advice about how to avoid being caught in such a scam, or being caught renting from someone on the verge of foreclosure? I’m new to California, and in a couple months will be looking for a San Diego house rental.

[Happy renter]

I am very confused and have questions:
1. How could someone use grandparent’s name to buy a house, but the grandparent didn’t even know? The grandparent as the buyer needed to sign the paper work.

2. I don’t understand that you said “your money into a escrow account”. What money and what escrow account? Escrow account is for someone buying a house.

[Happy renter]

I am very confused and have questions:
1. How could someone use grandparent’s name to buy a house, but the grandparent didn’t even know? The grandparent as the buyer needed to sign the paper work.

2. I don’t understand that you said “your money into a escrow account”. What money and what escrow account? Escrow account is for someone buying a house.

[Happy renter]

I am very confused and have questions:
1. How could someone use grandparent’s name to buy a house, but the grandparent didn’t even know? The grandparent as the buyer needed to sign the paper work.

2. I don’t understand that you said “your money into a escrow account”. What money and what escrow account? Escrow account is for someone buying a house.

[The OC Scam]

Again this is my neighbor so take with what its worth but he said the Adult grand child forge the documents and it has become a legal matter. The only reason he knows this is because he still talks to his realtor.

He also told me he thinks I should have Linda right me up (which I have requested)a legal document stating the lease contract was written without her permission. Then put the rent payment in an account (he said escrow account) to cover myself while we continue to live here until the bank asks for us to move out. He said this way the money is deposited every month before the late due date and shows I wasn’t just squatting here. I’m of course not doing anything until I consult with a lawyer!!!

[no_such_reality]

Why wouldn’t you stop paying rent and now wait until someone comes to kick you out? You’ll probably stay for three or six months while the home goes into foreclosure.

You can look for a new place and basically, get fair value for your last month’s rent and security deposit.

You just have the pain of moving.

[no_such_reality]

Duplicate system is hanging.

[Happy renter]

This terrible “House Bubble” does not only cause more people could’t afford to rent or buy houses, but also cause more criminals. The whole Real Estate market has problem. Filppers, speculators and criminals must be punished in order to correct the system. They inflate the house prices. It’s like stealing money from us indirectly. Things come around go around. We just have to be patient.

I agree with no_such_reality. You can stay there few months to make up your rent and deposit.

[SHILOH]

If one is going to “lose” a deposit, do to a scam, why would there be an obligation to continue making rent payments? Deposits are supposed to be held in separate accounts. Maybe it would be fair to cease making rent payments until the dust settles on this illegal activity and wait on the court to tell you what you owe. The court should leave you to find another place to live, with your good faith intent of moving out of the foreclosed property –since you have acted in good faith in all previous transactions.

And the court is going to be busy chasing the scammers.

[no_such_reality]

Having thought about it some more talk to a lawyer specializing in representing tenants.

At the moment, you’re stuck in the middle of an ugly mess and you need to get legal representation to protect yourself and recoup your $4400 of rent/deposit, moving costs and now legal fees. It’s roughly three months of living in the place, but you’ll want to stay on the right side of the law.

More importantly, representation now addressing the accused rent skimmers may prevent them from pulling further fraud with your information. You are a ripe target with excellent credit and they likely have all your info from your rental application. You’ll need to add a credit watch and instant notification of any applications to your credit.

[oc_fliptrack]

This guy has been doing tenant law in OC for quite a while… I had some contact with him five years ago:

http://www.californiadivorceattorney.com/topic30.htm

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