How do I protect myself against rent skimming?

L

LAlurker_IHB

New member
<p>Hello all. I've been reading this blog for quite some time and love all the detailed analysis. My wife and I are looking to rent a house in Los Angeles and after reading some of the stories about tenants getting kicked out of houses that are foreclosed on, I was wondering what we can do to not get into that same situation. I signed up for RealtyTrac (free 7-day trial) and the house we are looking at does not show up when I do a search (although there is a NOD across the street). Is there a way to monitor our address after we move in to see if an NOD is filed? Preferably for free; I would rather not have to pay $50/month for RealtyTrac just for this purpose.</p>

<p>Also, is there any way to find out what our future landlord's loan terms are? Is this public record anywhere? I see on Zillow that the house was purchased a year ago for $634k. From our initial inspection the entire house has been recently renovated, so he's probably in it for more than just the purchase price. If he put 20% down and didn't finance any of the renovation, our rent is still less than what his mortgage payment would be on a simple 30-year fixed. I suspect he would need an interest-only or neg-am loan in order to not have negative cash flow on this, which is why I have the concern.</p>

<p>So should we not worry about it and let him essential subsidize our housing? Am I being paranoid?</p>

<p>Finally, it is my understanding that if he were to sell the house before the lease ends (house is not currently for sale, but pondering this contingency) the lease transfers to the new owners. The exception is if foreclosure occurs, then the bank kicks us out. Is this correct? There is no clause addressing this in the draft lease.</p>

<p>Thanks in advance for all your help.</p>
 
I check the Orange County Recorder's Office website every week or so to check on our landlord's status. It is free.
 
<p>LAlurker,</p>

<p>I am glad to see that you are concerned about rent skimming as it's a real issue out there. Screening for legitimate landlord is my number one priority as I have seen enough rent schemings out there.</p>

<p>As an agent with access to information, I can almost identify rent skimmers off the bat. I only can feel comfortable with the landlord if I can meet him face to face to judge his characters. If the landlord wants to meet you to interview you, that is a very good sign. I hope you would use an agent to do the screening work for you. Good luck.</p>
 
<p>Yes it is good to see NIR back. I overtook her for the amount of comments since she has been gone so she has a lot of catching up to do. I miss the debates too.</p>

<p>LA county recorder is not online. You can go down there yourself and look them up for free though. You can look up the terms of the loan and look for the adjustable rate rider document to find out if and when the real panic will begin.</p>

<p>A better site is <a href="http://www.foreclosureradar.com/">http://www.foreclosureradar.com/</a> for foreclosure info. RealtyTrac isn't worth $5 let alone $50.</p>
 
<p>graphrix,</p>

<p>I appreciate your thoughtfulness. My business has been down so much that I took advantage of the situation and went on serious vacation. Yes, I noticed you surpassed me so I am working to build up some steam to start new debates. </p>

<p>Trooper, </p>
 
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