Tenant Unwittingly Leases Home In Foreclosure

KVBC-TV Channel 3 in Las Vegas, Nevada reports on the story of a woman who just moved to town and spent $1,600 to sign a year long lease lease and move into a home only to find herself house hunting again after two weeks. Reason: the home is in foreclosure. "We gave him the deposit and the first month's rent and we were here a week and were getting foreclosure mail in the mailbox," said the woman. Another victim of "equity skimming." For more, see Renter affected by high foreclosure rate.

For other posts on the problem of tenants unknowingly renting homes in foreclosure, go here and go here, and go here.

Statutes specifically addressing the practice of equity skimming (aka rent skimming) exist in some states, as well as in Federal law (12 USC 1709-2). alpha