help me figure out this craigslist real estate -- crime? scam?

[grasswire]

A beautiful home was listed on craigslist two weeks ago, for rent in my area. I have seen the same home listed for rent twice in the past two years. This time I contacted the lister. I went back and forth a couple of times. Couldn't actually nail him down to a time when I could see the home. Emailed again on Thursday and he said he had rented it to someone from out of state, but if the funds didn't arrive by 2:00 on Friday he would call me.

Okay. Something was fishy.

I googled the property and found it had been listed for sale several times in the past year. I called the realtor to find out what he knew. He told me the owner's name. Not the same as the craigslist lister.

So I emailed the lister again and said I couldn't understand how someone named "jim" could list a home belonging to someone named "joe and jill jackson".

This is the email he sent back to me:

"Jim is buying it out of foreclosure. I used to own a commercial/residential mortgage company and have private funds to buy it at the courthouse and also have it sold to others but cannot close till Jan of 2012 due to capital gains. I have bought many properties this way and will pay more than anyone as I already have it sold and have taken a big deposit for over 2x what the foreclosing 1st balance is. So if I can even make a dollar, I get some positive cash flow till 2012. Make sense? The sale is set for the 1st unless the seller can delay it again. Regardless its a win/win for me and someone else. I have permanent financing thru my network and cash to buy it on the courthouse steps. So im good and so are they."

What the hey is going on here? I googled and found that the house is indeed in foreclosure. But what's he doing? Selling a house that he has not yet bought at auction? Without telling people the house is not his? He may not win the auction. Then what? Who would fall for such a thing? Yes, it is a beautiful beautiful home. But he listed it for rent, not sale.

I can't make heads nor tails of this. I'm thinking of contacting someone. Maybe the local TV investigators. Oh wait. Maybe the foreclosure judge? Chase bank apparently is selling the house. It was worth $700,000 a few years ago, and from what I could tell $118,000 is owed to the bank.

Thoughts on what might be going on? I'll never have the house, but I sure hate to see someone scammed.

[we can do it]

1. Craiglist Is KOOKBAIT. Also Scammers Looking For Email Addresses To Sell

[grasswire]

2. that's not what this is

...and there are plenty of valid transactions that happen via craigslist.

[Vinnie From Indy]

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[Vinnie From Indy]

3. Really?

Of course it's a scam!!!

The response from the Craigslist guy is incomprehensible and rambling. You should flag the post. Why would you post this nonsense here?

[grasswire]

4. if it is true that he got 2x the balance on the mortgage, that's $232,000 n/t

[remember2000forever]

5. Definately a Scam. Check the MLS listings in your area. See if a Realtor has it

on a Short Sale. People steal Realtor's listings all the time. Drive by. Is it on a lock box or Supra on the door? Does it have a Realtor sign in front? That's the person to call to gain admittance to view the property. Not some scammer on Craig's List.

[flvegan]

7. Sounds like he's flipping it.

Well, a form of a flip. Selling it before he buys it, or rather contracting to sell it before he takes fee-simple title to it. IF he's telling the truth.

[remember2000forever]

8. One more thing

Just because $118,000 is owed on the house, that doesn't mean it will sell on the court steps for that. Appraisals set the price. Banks buy back their houses every day and put them back on the market as an REO. (Real Estate Owned) is a foreclosed property taken back by the Lender.

[DURHAM D]

9. Your first sentence states it is for rent - not sale.

Which is it?

If it is listed for rent then I would say the scammer is simply renting a property (without permission from the owner) and taking the security deposit and first month's rent and disappearing. Happens all of the time. Tenants should ask more questions about the owner and do their own research.

About three years ago I received a call from someone who had just moved into a house and found the ac didn't work, the hot water heater didn't work and the appliances had been removed. She had two young children and an elderly relative moving/living with her. She had been given my phone number to call for maintenance. It took awhile to figure out that some con man had given her my number.

I finally suggested she come to my office and bring her lease agreement. The two of us did what research we could on the internet to find the owner of the house and to determine that the leasing company did not exist and the person who signed the lease did not have a real estate license. Her money was gone and her house was not fit for occupancy. I called the various utilities companies to inquire if her deposits could be returned. Finally, I called the police for her. They met in my office and talked for some time. The officer advised her that she had to move out because she was illegally occupying the house. I don't know what happened. She never checked but in with me to even thank me for spending about 6 hours on the problem. I hope she found them a home.

[rfranklin]

10. Well, you earned points for a good deed...

I hope the big guy upstairs is keeping track...

[grasswire]

11. the listing said "for rent" at $1800/month

but what he says in the email doesn't exactly follow. He says he got 2 x the balance due on the house (which would be $232,000) from people who will be here on the 20th. And he will buy the house on the 1st but not close until 2012, giving him that cash flow.

I'm just trying to figure out what entity would have the best opportunity to investigate this. I tried to get a phone number for the people listed as the owners on the foreclosure papers, but apparently they do not have a land line. I did find another address for them locally. Apparently upstanding people; they donate to Habitat for Humanity.