Renters Face Eviction Despite Making All Payments; Evidence Points To Possible Rent Skimming, Lease Option Scam

In Shelby, Tennessee, the Shelby Times-Gazette reports:

• Several Shelbyville families [...] are suddenly faced with losing the roofs over their heads -- even though they have been making their house payments on time. The families claim they have been victimized by several individuals from Murfreesboro who are purchasing properties from American Value Homes and setting up two-year leases with purchase option agreements. They claim they were led to believe that the money they were paying was going toward the purchase price of their homes. But instead, the money was apparently not paid to the finance companies and the homes that the families are living in are now being placed in foreclosure and auctioned off by banks.

• What makes matters worse for the families is that they say none were ever informed about the foreclosures. They only learned of their situation when auction notices were published by the Times-Gazette, or when the bank told the occupants they had seven days to get out.

For more, see Fraud claimed in home deals.

For other posts involving rent skimming (aka equity skimming) and lease/option scams, see Tenants Unwittingly Renting Homes In Foreclosure I , II , III , and IV; and "Rent To Own" Scams I. equity skimming unwittingly gamma rent to own lease purchase option scams zebra