With the economy the way it is today, it's nearly impossible to watch the news or read the news paper and not hear about how high the foreclosure rate on homes is. However, what most people companies and home lenders very unhappy, to put it politely. This is something that is no secret to them, as it may not be a secret to some of you either, however shocking it may seem. As I was saying, The foreclosure rates, at least in the state of Florida, are by far as high as they have ever been. Whenever people find themselves in financial binds, it's only human nature for them to do whatever they possibly can to get themselves out of that bind. Illegal, morally unethical, or not, people will always do whatever they have to do , and will continue to do so.

When a home goes into foreclosure, it can literally take years for that foreclosure to become finalized. Some people who are in this situation choose to "ride it out," and stay in them home until the day comes when the authorities come knocking on the door to escort them out of aren't aware of, or don't hear about, is how people are actually making money on their home foreclosures. Now, first things first. What I'm about to share with you is definitely something that will make mortgage the home. On the other hand, there are people who know how long of a process a home foreclosure is, due to such a high amount of home foreclosures there currently are in this country. These people who know how lengthy of a process this is, they have found a way to take advantage of the situation. As opposed to staying in the home for as long as they can, they have chosen another road to take. These people who have taken this road, is a road that ultimately leads them to making money on their foreclosed home. When I say these people are making money on these foreclosures, I mean they are making a lot of money!

Before I had mentioned, that when people are in financial troubles they will do things that are not only unethical, but sometimes illegal. In this case, as surprising as it may sound, what I'm about to share with you, is definitely morally unethical, but not illegal. There are quite a few people whose homes have gone into foreclosure, that are actually moving out, and renting out their homes for "cash only" rent. Because the foreclosure process is so long, these people who are renting out their homes, are pocketing the rent money and continuing to let the home proceed in foreclosure. Now, I know there are morally sensible people out there that are probably saying to themselves, "this has to be against the law!" Well, it's perfectly legal. I have a source, who just so happens to be a real estate agent, who has confirmed that what these people are doing, is in fact, legal. They are breaking no laws, as of yet. It's only a matter of time, when a law gets passed, to make this "easy money scam" a crime. But until then, some of these people are making hundreds of thousands of tax free dollars.

Lets for a minute do some math, but we'll keep it simple. For example, a person happens to own three homes, and chooses to let each of these homes go into foreclosure. Let's say that person chooses to rent each one of these houses for $2500 per month. There are some cases in which these homes that go into foreclosure, can take up to three years before the foreclosure process is final. Let's get back to the math, with three houses at $2500 in rent per month, that's $30,000 per house each year. Now remember, that person is renting three homes, so that $30,000 now turns into $90,000 of tax free money in the pocket of a person who does nothing but allow three homes to go into foreclosure. Like I said, "unethical...yes, illegal...not yet!

Patrick Ward

11/06/09