How to be protected from foreclosure or shady owners on VRBO?

[teamroberson]

Based on the economy I have a couple questions, when using VRBO for rentals in your area, how can we be sure the rental we are securing is not under foreclusure or some other disasterous state and will actually be avilable when we arrive. How do we know that the person we are paying will not walk away with the money? Any recommendations. Thanks!

 

[Kurt]

Not sure if rental insurance covers foreclosure, but one of the advantages of renting through an agency is the possibility of them putting you in a different place. On the second question you can never be too sure, maybe paying with a credit card will offer some protection. Don't pay all money in advance, but rather a deposit.

 

[scooterbug44]

I think this will be a common question/problem this year, but unfortunately don't have a 100% solution for you.

 

[desertbluff]

This is a very good question. We've rented several times in the area and on St. George Island as well. Even though the homes may be on VRBO, the ones we've rented used local agencies that were involved to varying degrees in the reservation process. We've directed questions (a lot of questions) directly to the owners and to the agencies, both by phone and e-mail. We've found the agencies to be very forthcoming with any information, particularly if a home is currently for sale.
Another place to check is Zillow.com. A couple of years ago, we were gathering information on a home we liked and Zillow showed the home for sale. We addressed that issue with the owner and did end up renting it with provisions in the contract that gave us protections should the home be sold before we arrived or if agents wanted to show the home during our rental period.

 

[desertbluff]

I recall seeing a vacation rental insurance product (Travel Guard, perhaps) that addresses problems such as foreclosure or extreme misrepresentation of the property. We've never purchased that kind of insurance but we do purchase travel insurance. I agree with Kurt that a deposit by credit card is a good idea.

 

[seagrovegirl]

Very good question teamroberson, I haven't even thought of that and I am in the rental business.

I am not an insurance provider or get paid by CSA, but below is FYI.

CSA Travel Insurance is a travel protection insurance specifically for vacation rentals. It may be to anyones benefit to look into insurance because of the possiblity of your vacation home not being available by the time you are ready to use it The number is 866-999-4018 or google CSA Travel Protection.

Depending on the total price of your reservation determines the amount the insurance is, and IMO I think it is very reasonably priced. I've purchased insurance once and thankfully didn't have to use it.

 

[Smiling JOe]

There are never any guarantees, other than doing your own dd. Fortunately, the vast majority of owners who are being foreclosed and who have short sales, aren't thieves, and they are not out to hose the public.

 

[desertbluff]

There are never any guarantees, other than doing your own dd. Fortunately, the vast majority of owners who are being foreclosed and who have short sales, aren't thieves, and they are not out to hose the public.

I agree - very well said.

 

[Matt J]

Two very good resources to verify this:

Welcome to the Walton County Florida Property Appraiser's Website
Home Page (Use the Official Records Search)

Obviously this won't completely clear your doubts if your rental is in 6 months. Ultimately I hope people don't think this is acceptable. It would be considered fraud which based on the amount involved in the average weekly rental would most likely make it a felony.

Also, follow your gut and watch out for the "crack head" syndrome. This would be the owner desperate to get all of your money up front (I mean months ahead of time) and is willing to really wheel and deal to get your check. This is a good sign that they are already behind and barely afloat.

Finally, be a private detective. Get the units phone number and call a week or two before you arrive. Explain to whomever answers that you are renting the unit in a week or two and just wanted to make sure the phone was in working order. Odds are if the phone is still on the owner is legit and not about to run out on the deal. In my experience with rentals the phone was the first thing to go.

 

[ShallowsNole]

On the Clerk's office website ("Home Page" in SWGB's post above), go to "Public Records" and "Official Records." Search by the owner's name. Make sure they own the property they are advertising (some owners also rent for other owners). Then, look for the document type "LIS PEN." A Lis Pendens is the first document filed in a foreclosure case. Note the date, and you should also be able to see the case number.

Note that some owners will stop renting and pull their furniture out when they go into foreclosure, but I've seen owners rent right up to and actually after the date of Final Judgment.

And, lastly, travel insurance is always a good idea in the remote chance the owner is less than honest, something happens to the house, or there is a tropical weather event affecting our area during your travel dates.