Phoenix AZ Renters should request Landlord’s Credit Report

November 30, 2008

“Sharks smell blood in the water.”, I think that is how the old saying goes. Unfortunately, this old proverb is all too real in today’s Phoenix real estate market. When people struggle, hustlers, sharks and scam artists show up to try and take advantage of fear and suffering.

Phoenix AZ real estate is down more than 30% in the last year alone. Phoenix AZ real estate prices have (for the most part) retraced gains and are now back at 2004 prices. As a result, there are many homeowners who are weighing the decision to walk away from their mortgage and let the home be foreclosed upon.

Phoenix AZ homeowners who are facing a short sale, ask themselves “why pay??”Phoenix AZ Renters should request Landlord’s Credit Report

Due to the financial straits, some owners are crossing the moral ethical boundaries are making bad decisions to take advantage of their banks/lenders and other  innocent individuals.

Homeowners who purchased Scottsdale AZ real estate investment properties are offering the homes for rent. The problem is that they are not telling their tenants that they are already behind on their mortgage and a foreclosure proceeding is imminent.

A new scam is popping up and want to make sure Phoenix AZ real estate agent s and Scottsdale AZ real estate buyers or renters are aware.

Would be landlords are offering their home for rent at a deeply discounted price. Here’s a story ….

  • The Scottsdale AZ rent analysis shows that the home would rent for $2,000/month
  • The landlord offers the home for rent for $1,400
  • Excited renters race for the right to get such a great deal
  • The landlord asks for a credit report
  • The landlord tells the buyer that due to the credit report they require 6 months rent paid in advance
  • Apparently, this does not violate any laws on security deposits
  • The renter, thinking it is such a great deal, is happy to oblige
  • The renter also pays 1 month security deposit and (1/2 months rent) $700 in damage deposit
  • $10,500 total cashier’s check would be paid for the above
  • The renter was happy to do so in order to get such a great deal.
  • What’s the big deal, would pay that money anyway? Right ?? Wrong!

Apparently, within weeks of moving into the home, foreclosure notice appeared on the door. When the tenant called the landlord, the phone number was ‘No longer in Service”!

The tenant went to the home of the landlord which they were able to find from public tax records only to find that home had been abandoned with foreclosure notices on the door.

Within 30 days, the bank had foreclosed upon the home and sent a sheriff to give notice to the tenants to move within 48 hours.

This is a horrible story. The tenant has no money to pay for movers or pay for first month, last month and security deposit at a new place. For the time being, the nice family is moving in with parents.

Yes, these wronged people will file suit. They expect to and will likely win. But, that does them no good today. And ultimately, they hold little confidence that they will be able to collect money from people who have 2 homes in foreclosure and likely have none themselves.

This may sound a little sarcastic, but we have entered an age of Tenants asking for a credit report from landlords. Make sure you work with a Phoenix AZ real estate or Scottsdale AZ real estate agent who is experienced with landlord / Tenant rights.

Make sure you have your Scottsdale AZ real estate agent help you request a credit report and a proof of the mortgage being current.

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Copyright © James Wexler * Phoenix AZ Renters should request Landlord’s Credit Report *

If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.

Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale bank owned homes

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Written by James Wexler · Filed Under Articles 

Comments

One Response to “Phoenix AZ Renters should request Landlord’s Credit Report”

  1. Sylvia on November 30th, 2008 2:17 pm

    I suggest renters pay the rent directly to lender. I also have talked to some escrow companies about servicing renters accounts in order to protect security deposits and assure the renter that the lender is being paid.
    I have not had a response from the escrow companies.

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