Renters Beware! New scams targeting renters are another way that the foreclosure crisis is affecting Floridians.

A recent Palm Beach Post article discussed a  Wellington-based company called Saving Palm Beach Homes Inc., run by Mark Guerette, that entered into numerous rental agreements on homes that were not actually owned by the company or its founder. The homes were in foreclosure, but Guerette hoped to use a centuries-old law to take possession of the foreclosed properties in Palm Beach and Broward counties. Florida Statute Chapter 95 deals with adverse possession and allows a person who cares for and acts as the owner of a property to legally take  possession of the property after seven years. The volume of foreclosures in recent years has created confusion over who owns properties. As mortgages are transferred between lenders and companies go out of business, documentation can be lost leading to mix-ups over ownership of properties. "This is the ideal opportunity for adverse possession because titles are clouded," said Kama Monroe, senior attorney for the Florida Department of Revenue. "No one is sure who to call to say, 'get them off my land." It is, however, still not legal for a person or a company to collect rent on homes they do not own.

Craigslist is the source of another rental scam targeting Palm Beach County residents. People are posting fake ads on Craigslist advertising rentals at very low rates and using property photos from actual listings. When prospective renters contact them, they ask for either forms with personal information like bank acounts and social security numbers, or in some cases they ask for payment to be sent in exchange for keys to the property. Click to read more about the "cash for keys" scam.

There are many people currently trying to take advantage of the upheaval in the real estate market and this can affect Palm Beach County renters in many ways. Some use a hoax like the ones described in this post. Others simply rent out their properties knowing that they will not be paying their mortgage. Tenants then wind up living in the property during the foreclosure process and dealing with the uncertainty of when they will be forced to move. Some landlords stop paying fees to their condo or homeowner's association. With the recent passage of SB 1196 associations will now likely pursue tenants to re-direct their rental payments to the association until the owner is caught up on their obligations. Since many landlords are not aware of the new law, tenants can find themselves in a difficlut position where both the landlord and the association are demanding rent from them. 

For all of these reasons it is important to do your research before signing a lease. Make sure that the property is not in foreclosure. If there is an association make sure the owner of your unit is current in paying all related fees.  If you are already in a rental and are dealing with these problems consider a consultation with a real estate attorney who can give you guidance on your rights and obligations in the situation.