Within seconds of searching the Internet, potential home renters can find all the information they need about a possible new home, such as pictures, prices and virtual tours. However, such tools give scammers the perfect opportunity to take advantage of consumers. Better Business Bureau warns renters to be on the lookout for phony ads on Craigslist and other Internet services aimed at stealing money.

Consumers typically fall victim to these scams after responding to an online classified for a rental property. Victims say they are asked by the supposed landlord to wire money for the deposit and first month’s rent in order to receive the keys to the rental home. When asked if the renters can view the property prior to wiring money, the landlords claim to be out of the country and unable to show the house.

As a result of this scam, many shocked homeowners have received knocks at their doors from people who were planning to move into their new rental home. Often, the actual homeowners have their house up for sale — not rent — and have pictures posted online that the scammers steal for their phony listings.

BBB warns consumers of the following red flags:

The deal sounds too good to be true. Scammers will often list a rental for a very low price to lure victims. Find out how comparable listings are priced. If the rental comes in suspiciously low, consider walking away.

The landlord is located elsewhere and prefers to communicate via email. Scammers might (more…)

Better Business Bureau of Southern Arizona is warning consumers who are facing the threat of losing their homes to be wary of individuals and companies offering to “help” them out of their difficult financial situations.

Consumer advocates report an increase in complaints about foreclosure “rescue” scams. These scams specifically target homeowners who are in financial distress, and have flourished in the current economic climate.

Scam operators advertise over the Internet and in local publications, plaster posters on telephone poles and at bus stops, stick flyers in people’s front doors or contact people whose homes are listed in public foreclosure notices. Sometimes they direct their appeals to specific religious or ethnic groups.

In one scenario the scam operator offers to buy the homeowner’s property by paying off the amount that is overdue on the loan. He convinces the homeowner to move out and deed the property over to a third party. The homeowner is given the option of renting the property with the option to buy it back later.

After the homeowner moves out they typically find that the rent payment on the home is higher than they can afford. Often times, the original homeowner cannot make the rent payment and is evicted from their home.

The hapless homeowner can lose his equity and his home. Sometimes, the homeowner’s troubles go even deeper. In many cases the initial mortgage has not been paid off and the deed was never (more…)

In the wake of several tragic deaths, and other crimes across the country involving transactions initiated through Craigslist, Better Business Bureau of Southern Arizona is advising consumers’ to practice caution when using the online service, and others like it.

“There are certainly deals to be found online, but it’s good for both buyers and sellers to remember they’re usually dealing with people unfamiliar to them,” said Kim States, BBB President. “There are risks involved and we feel it’s very important that people take the time to pause and consider both their personal and financial security.”

Here are some basic tips from BBB in regard to using sites like Craigslist:

• Try to deal with local buyers and sellers.
• Never wire funds.
• Use caution when using an escrow service – make sure it’s reputable by checking them out at (more…)