Rental fraud finds home online

Rental fraud finds home online – The Denver Post, 06/15/09

“With the economy forcing an increasing number of people to rent homes, scams are proliferating online, particularly on Craigslist.com.

Real-estate brokers are seeing more of the homes they have listed for sale pop up as rentals on the online classified site. Potential renters are showing up at homes telling the owners they are responding to an ad on Craigslist. And in one instance, a couple moved into a home, unknown to its off-site owner, after responding to a fraudulent ad on Craigslist.”

This article was interesting in that it pointed out the hazards of real estate transactions on the internet.  I think it would be a service to readers to point out some easy ways for an internet shopped to protect themselves from dealing with an “invisible-man”.

In this case, the shoppers were attempting to find a suitable rental. It seems they were dealing with a real estate agent. All real estate agents and mortgage originators who are licensed in Colorado are listed by name at http://eservices.psiexams.com/crec/search.jsp. If the person is an agent, they should be listed in this database. If they are not listed, it should be a red flag.

If they are renting a property from someone who claims to own it, many counties have an assessor’s database that is easy to access online. In Jefferson County, a prospective tenant can enter the property address at http://jeffco.us/assessor/index.htm and quickly determine the owner’s name and address. Similar information is available in other counties. If the information is not available online, it is easily checked at the assessor’s office.

If the prospective customer is dealing with any business, they can search the Secretary of State’s business database by name at http://www.sos.state.co.us/biz/BusinessEntityCriteriaExt.do. If the business is not listed, it would raise a red flag for me.

A Google search of the business phone number will quickly confirm the name and address of the phone listing. I would expect any business to have at least a main number listed even if an employee is using a cell phone. If the phone number is not listed, if there is only an unlisted cell phone, or if there is no address is Colorado, it would be a red flag to me. If there is an address listed, does it cross check with any of the above databases?

If a prospective customer wants more protection from an “invisible-man”, a public records name search is quick, easy and free in Jefferson County at https://landrecords.co.jefferson.co.us/. Similar searches are available either online or at the clerk and recorder’s office in all counties. The obvious search if I am involved in a real estate transaction would be to check and see if the person I am dealing with owns or has owned any real estate. Being involved in a real estate transaction with a person who has never owned any real estate would be like taking driving lessons from someone who has never driven a car.

The above are just some suggestions how an internet shopper can protect themselves.

Don Opeka – President
Licensed Colorado Mortgage Loan Originator MB100007878
Colorado Certified Mortgage Broker

Orion Mortgage, Inc.
10560 Wadsworth Blvd.
Broomfield, CO 80021
303-469-1254
800-404-0453
www.OrionMortgage.net
Don@OrionMortgageInc.com

Check the license status of any Colorado mortgage loan originator at http://eservices.psiexams.com/crec/search.jsp