Loading ...For people buying a house with lis pendens or other types of foreclosed residences, experts are emphasizing caution. They stated that the rise in the number of foreclosures has also resulted in increased number of fraudulent activities related to buying and selling distressed properties.
A number of buyers of Philadelphia foreclosures for sale and those entering rent-to-own programs have found out how easily they can be duped by people who are taking advantage of the foreclosure crisis. Recently, the Philadelphia City Council held a meeting with state residents who have become victims of fraudulent activities by realtors, agents, developers and even home sellers.
Several Pennsylvania foreclosures are currently the subject of authorities' investigations as several residents have stepped forward, recounting their experiences of joining a rent-to-own program. However, the properties that they were supposed to be owning soon ended in foreclosure, even when they diligently paid their monthly dues and most have even spent their own earnings to spruce up the dwellings.
According to local housing experts, it was just one of the types of fraudulent activities perpetrated in the housing market. They stated that some can fall victim to other quick money-making schemes like people buying a house with lis pendens and ending up with nothing after paying for the property. With regards to the rent-to-own program, city councilors are stepping up efforts to resolve the issue as banks get set to sell between 60 and 100 properties that have been foreclosed under the scheme.
Local officials stated that this could result in neighborhood blight in areas like Kensington, Fishtown and Port Richmond, where majority of the homes offered under the rent-to-own program can be found. They also revealed that a solution should be found soon to prevent these foreclosures for sale from getting sold by banks. However, officials admitted that the banks would be within their rights to sell the properties as they have also been victimized by the people behind the scheme.
With such practices continuing to occur in various areas of the state, experts stated that people buying a house with lis pendens should be more careful in dealing with brokers and other real estate professionals. They suggest consulting a local government housing agency first before going through a purchase or rent-to-own agreement.
