Buyer Beware: Pre-Foreclosure Scam
29 Aug
My husband and I are looking for lower rent. When we came across a listing on Craigslist for a pre-foreclosure at a rent for $710, we were like ‘WOW!’ You have GOT to be kidding me! Here in Los Angeles California?
We promptly called, and I first spoke to a guy named Mike who was ‘the Manager’, and pleasantly assured me that “We screen our calls, we have them recorded for Customer assurance. We also are federally run, and have to report to the government. If we can’t find you a home within 30 days, then we give you your registration fee (which is $199). That’s all you have to pay. No taxes, no downpayment, only your first month’s rent. The banks do require you to pay through your checking account.” . Although I could hardly get 2 words in the conversation, he did make it sound pretty legit. Whew! So I ran to my husband who informed me that it sounded too good to be true, so to find out how we can verify their company.
They do sound legit. Pretty incredible. So I thought as I called them back, it shouldn’t be too hard for a ‘legit company’ to verify their identity, ESPECIALLY if they are federally run, and have to report to the government…
I called and spoke to Steve Ross. He sounded like a REALLY nice guy. He told me, “Oh yes, we are listed with the Better Business Bureau. We do work with the federal government, meaning that we have to report to them every month. And.. so yeah. What are your concerns? Have we spoken to you before?” I said, yes. I also asked him for the second time what the name of his company was. He seemed pretty apprehensive about giving it to me. He said, “Oh? Nobody gave you our name or website information? Oh well, you can read about us at American Standard Online. We ended the conversation with a ‘Thank You’ and I went promptly to 1) their website, then 2) the BBB.com I found this:
I must say, I was pretty shocked. An F? I called back, because I wanted to make sure I had the right company. So I did. I figured they wouldn’t mind a prospective buyer calling multiple times in a day. Any company, especially in this economy starves for customers, am I right? We sure do!
I called, and spoke with a third guy, Scott. He sounded on guard. A thought passed through my mind (do they realize that I have called mult. times, because they see my number?). I proceeded to tell him the history. That I’ve called a few times before, my husband I are excited about getting a house – ESPECIALLY for the rate that is being advertised. All we want to do is just verify your company. I called before and spoke to Steve Ross and he told me you guys were listed with the BBB. I looked up ‘American Standard’ and… I just want to make sure you guys are located at American Standard in Ventura, CA”. He said “yes, we are”. And I told him, “Oh really? Uhhh, because you guys have a rating of an ‘F’. That’s pretty bad. He then proceeded to give me ‘the bomb’ schpeal: “Ok ma’am, if you’re nervous about going through us, I wouldn’t. I would go away. Because I don’t want a charge back.” I told him, “Oh, I totally understand. My husband and I run a company ourselves, and know that if we were to get a chargeback that would be bad. I totally understand. That’s why we want to protect ourselves as well when becoming the customer for someone else. WE just want to know who we’re working with.” He then said, I”m not like the other guys who will get all mushy and try to persuade people to go with us. Frankly, if I don’t get the money up front ($199), I walk away. It’s not worth it for me.” I asked him, “You mean to tell me, that you – a ‘government run business’ can’t show us that you’re legit?” He said, “Who told you that we were government run?” I said, “Steve Ross.” He said, “I don’t know what he was talking about. All I can tell you, is don’t bother working with us because if you’re nervous about it – I am telling you it’s not worth it. I would go away.”
WOW!
So, I am sending out this WARNING. If it sounds too good to be true. It probably is. If they can’t verify their business, RUN AWAY!!!!
American Standard Review
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Wow. Thanks for the info. I hate that there are so many scams on Craigslist. Why do people capitalize on the ignorance and weakness of others? Just because someone is not informed does not make it justified.
Thank you. I called tonight and got Mike. Almost fell for it but decided to investigate. BTW, they raised there rates.
Wow thanks so much for the info.. They actually have a really amazing link on craigslist right, honestly sounded too good to be true, and now we know it is. http://denver.craigslist.org/apa/1654406114.html
We called and tried to get more info, had the same information told to us, so we decided to research it before committing. Glad we did! Thanks again for the info!
Thank you for posting about this! I *knew* that the listed house look too good to be true. We were looking in the Monterey, CA, area and $1,010 for a house (rent-to-own) only was their scam. As they stated, the house was worth $400k but reduced to $195k due to pre-foreclosure. Anyone with common sense can tell you that a house WORTH $400k would not be available for a thousand dollars a month with no deposit, interest, or closing costs.
Yeah. Right.