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Squatters, Scammers Move In on Foreclosed Homes

Increasingly, abandoned homes are being used for nefarious activity

By Jim O'Neill, Newser User

Posted May 19, 2008 3:30 PM CDT

(Newser) – Add a new twist to the housing crisis: Squatters are increasingly using homes that have been abandoned for months, and con artists are scamming banks in “cash for keys” deals or luring people into “leasing” homes that actually are foreclosures sitting empty, Reuters reports. Authorities can have a hard time proving the squatters aren't renters—and get little help from foreclosed-on owners.

"For squatters, foreclosed homes like this are like a camp-ground with free camping," one foreclosure specialist said. Adds one detective investigating scammers who rip off lenders, "It's just cheaper for the banks to do that rather than going into the courts. The squatters are getting sophisticated and turning it on these banks who own the properties."

Prospective buyer Marcia Coleman takes a last look at the home she just viewed during the Foreclosure Bus Tour in Orlando, Fla. (AP Photo/Peter Cosgrove)

A foreclosure sign is seen atop a sale sign for a house in Stockton, Calif. (AP Photo/Marcio Jose Sanchez)

A realtor's sign is seen on the lawn of a foreclosed home in Egg Harbor Township, N.J. (AP Photo/Mel Evans, file)

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Squatters, Scammers Move In on Foreclosed Homes

Increasingly, abandoned homes are being used for nefarious activity

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eviction • housing crisis • subprime crisis • mortgage defaults • foreclosures

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More Newser Stories

Perry Gave Huge Tax Grants to Subprime Lenders

Countrywide, WaMu got $35M as they upped risky loans

Detroit Woman, 101, Evicted From Home of 58 Years

Texana Hollis' son admits he stopped making payments

Obama Looks to Keep Feds in Mortgage Biz

Prez reportedly rejects calls to pull gov't out of housing market

SEC Poised to Charge Fannie, Freddie Execs

But regulatory agency disagrees, and nothing has yet been filed

Calif. Lawyer: Break Back Into Your Foreclosed Homes

Radical attorney helps clients squat in bank-owned properties

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Squatters, Scammers Move In on Foreclosed Homes

Increasingly, abandoned homes are being used for nefarious activity

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OTHER STORIES ON OUR RADAR

eviction • housing crisis • subprime crisis • mortgage defaults • foreclosures

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Perry Gave Huge Tax Grants to Subprime Lenders

Countrywide, WaMu got $35M as they upped risky loans

Detroit Woman, 101, Evicted From Home of 58 Years

Texana Hollis' son admits he stopped making payments

Obama Looks to Keep Feds in Mortgage Biz

Prez reportedly rejects calls to pull gov't out of housing market

SEC Poised to Charge Fannie, Freddie Execs

But regulatory agency disagrees, and nothing has yet been filed

Calif. Lawyer: Break Back Into Your Foreclosed Homes

Radical attorney helps clients squat in bank-owned properties

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?