That’s a pretty solid life lesson, which should certainly be applied to many things, especially when it comes to making a big decision like where you intend to lay your head at night.

Therefore, be weary of “homeowners” who offer to rent properties — that aren’t even theirs to market — for rockbottom prices. In fact, with the glut of foreclosed homes affecting just about every corner and neighborhood throughout the United States, the opportunities for scammers looking to dupe hard-working, honest folks increase exponentially.

Such is the case foreclosed homes being used to scam would-be renters. The scammers list foreclosed and/or vacant homes for rent, collect a down payment, typically online, and then disappear.

Rinse, wash, repeat and cheat.

A Keller Williams Realty agent from San Jose, Calif., explains how it’s done via the Seattle Times:

“They [a scammer] take my listing, flip it around, advertise it as a rental. People are told to wire money to an overseas account. Usually, the common thread is, ‘I’m the owner, I’m out of the country for some reason, and that is why I can’t come and meet you. If you’re interested, here’s my bank account, for the deposit.’”

Naturally, the would-be renter, in most cases, can’t “enter” the property until a deposit is made, meaning that photos online and a curbside inspection in these types of scams are red flags that must be identified — and avoided — at all costs.

Other foreclosure rent scam red flags include, but are not limited to:

• Insist on meeting the owner
• Don’t wire a deposit in exchange for the keys
• Be wary of rentals that are “too good to be true”
• Get a written rental agreement
• Be suspicious if the owner doesn’t want any information about you

Craigslist, which “goes to great lengths to prevent scams,” is often a common hunting ground for scammers to attempt this type of terrible trick. Be smart, rent carefully.

To check out a very reliable list of foreclosed homes for rent be sure to check out the best nationwide database right here.

Our good friends at DoorFly.com think so, saying that buying is almost always the better choice.

Why?

Let’s let them list the ways … all 10:

1. Build equity
2. Ownership
3. Make upgrades
4. Lock-in payments
5. Increase line of credit
6. Make a profit
7. Payments eventually end
8. Home value increases
9. No landlords
10. Emotional satisfaction

To read brief explanations for the points mentioned above check out the article in its entirety right here.

Remember, too, that Foreclosure.com offers a nationwide list of foreclosed homes for rent, which is often referred to as an option that provides “the best of both worlds” because you build equity while you rent.

To search foreclosed home for rent in your area today click here.

Foreclosure.com today announced that it recently added thousands of foreclosed homes for rent-to-own properties to its industry-leading, nationwide database of more than 2 million distressed real estate listings.

To search for potential foreclosed homes for rent to own in your area visit http://www.foreclosure.com/rent_to_own today.

Foreclosure.com already offers the most comprehensive, accurate and current collection of preforeclosure, short sale, foreclosure, Sheriff sale, foreclosure auction, bank repossessed (bankruptcy), HUD homes and tax lien listings in one convenient location.

Adding foreclosed homes for rent-to-own properties, according to company Vice President James Houston, was a natural progression that reflects a shift in the ever-changing housing market.

“Buyers, who are predominantly watching their wallets closer than ever, as well as financial institutions, which have tightened their lending requirements significantly, are all super cautious right now,” said Houston. “Renting foreclosed homes with options to buy them at later dates is the best of both worlds: Buyers aren’t locked into long-term, expensive contracts and banks don’t have to worry about a glut of defaults.”

Houston adds that the renters of foreclosed homes also have time, which all depends based on the individual agreements, to “test drive” communities and neighborhoods, all the while putting dollars toward a potential purchase. It also helps revitalize foreclosure-ravaged homes, which can often drag down surrounding property values if left in states of disrepair.

“Foreclosed homes for rent is one of many bridges that will get the housing market on the road to correction sooner rather than later,” said Houston. “And, because our listings are bank-owned with options to buy, renters don’t have to worry about having their homes sold from underneath them.”

To search for potential foreclosed homes for rent to own in your area visit http://www.foreclosure.com/rent_to_own today.

The San Diego Union-Tribune passes along good advice:

“… you’re going to need to dig a little. First off, be wary if the lease you are signing is too good to be true…. A home or apartment offered for below the market rate or a deal that requires several months of rent upfront are clues that things might not be on the up-and-up. You might also want to check if there is a notice of default on the property…. If you see a notice of default, run, don’t walk, away. Once you are in a property, it’s a good idea to run the same type of check every couple of months to avoid any unwelcome surprises.”

To find out if a notice of default has been filed on the property in which you are renting you can inquire at the local courthouse or search Foreclosure.com.

Remember, too, that we now offer “Foreclosure Street Alerts,” which will notify you via email as soon as a house on your street goes into foreclosure. To receive these free alerts click here.

The sourced article also sheds light on what to do about payment, as well as what your legal rights are as a tenant (will you be evicted?), if you find yourself living in a foreclosed property.

To rent or to own, that is the question.

In theory, buying is always better than renting because at some point you will own your house outright whereas renters are perpetually filling the pockets of others.

In reality, it can be tough to make the leap from renter to owner.

That’s because there is a lot on the line — there are several unknown factors that can and often do influence these types of decisions:

Do you have a big enough down payment? Will you qualify for a mortgage? Can you afford maintenance? For how long do you plan to hang on to the property?

The Feb. 2010 edition of Foreclosure.com’s free educational newsletter, “Investment Exchange,” is now available, which details everything you need to know about “Rent vs. Own.”

Our goal is to get you thinking about this important decision sooner rather than later. The housing market is still extremely buyer friendly right now — interest rates are still low, limited-time government incentives are still available until April 30, 2010 and chances are good that prices in your area have never been better.

On the flip side, buying a home or investment property is still one of the biggest decisions you will ever make. So you still need to consider all the pros and cons before jumping in head first.

So check out “Rent vs. Own” today so you can decide whether or not a home purchase or lease is in your best interests.

To read this month’s free educational newsletter from Foreclosure.com CLICK HERE.

Foreclosed homes aren’t just great deals for potential homebuyers — renters, too, can enjoy the savings.

More and more homeowners and investors are realizing they bit off more than they could chew with their current mortgage commitments. It’s among the many reasons foreclosures are up across the board.

When the payments become just too much to handle, these homeowners and investors have few options other than to sell, rent or simply walk away and lose their homes to foreclosure.

The latter option, foreclosure, is really the worst of the bunch.

But sometimes it happens so fast — in as little as one to three months in several states — that homeowners and investors are left spinning, wondering what just happened to them.

The good news is that these folks are starting to catch on and realize that these are ideal rental conditions. Why lose a home when you can find someone else to move in and pay all or most of the mortgage bill?

Indeed, homeowners would prefer to rent their homes rather than to lose them outright.

Of course, homes in foreclosure are not necessarily always on the market as rentals. In fact, homeowners and investors may not even know that renting is an option.

That’s where you come in.

Homeowners are generally very attached to their homes, but might be willing to entertain reasonable rental offers if it means salvaging their long term investments.

So how do you approach a homeowner in distress and propose a rent agreement?

Here are some basic pointers:

Learn about the property
Before contacting someone facing foreclosure, find out as much information as you can about the home. Research how much the home is worth, how much the homeowner still owes and the monthly mortgage amount. This information will give you a good starting point to know what to offer in terms of rent.

Expect non-traditional agreements
Any agreement you strike with a homeowner facing foreclosure will probably follow unconventional terms. For example, consider offering a six-month agreement or even a month-to-month. If you are willing to tolerate minor inconveniences in exchange for a lower rent cost, propose showing the house to potential buyers while you are renting. Homeowners in distress will probably slice several hundred dollars a month off the mortgage if it means you are flexible and help them cover some or all of their mortgage.

Tactfully propose a fair exchange
A simple way to approach a homeowner is with a hand-written letter that describes your needs as a renter. Offer to provide references upon request and explain that you are willing to entertain flexible terms. As a negotiator, it is to your benefit that the homeowner be aware that you know he/she is in foreclosure.

Where do you find homeowners facing foreclosure?

First, understand that homes that have been foreclosed are no longer in the hands of the homeowner. These are being resold by the original lenders and are probably already listed with agents. Therefore, the properties you should look at are classified as preforeclosures. This is an important point — make sure you fully understand the differences between homes in foreclosure and preforeclosure (facing foreclosure).

To check out a very comprehensive list of nationwide preforeclosures CLICK HERE. Start your nationwide foreclosure rental search now — it is free to search with a FREE 7-Day Trial.