Ray Nagin house in Dallas facing foreclosure

Ray Nagin — the passionate and often controversial 60th Mayor of New Orleans, La. — is in danger of losing his “vacation home,” which is located in a Dallas, Texas, suburb, to foreclosure, according to the Wall Street Journal.

Nagin — who is perhaps best known for his handling of the epic Hurricane Katrina disaster in 2005 — purchased the property, valued at $182,000, as a “hurricane home.”

Court records indicate, however, that Nagin has failed to pay the Homeowner’s Association (HOA) fees on his 1,700-square-foot home in Frisco. It is expected to be put up for sale at a public auction on April 7, 2009, if the lien issued by the HOA is not resolved in the next few days.

The good news is that the report indicates Nagin intends to resolve the matter “shortly.” The clock is ticking … the auction is little more than three days from now.

Foreclosure rent scam uncovered in affluent Dallas suburb

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Renters in the Lake Ridge development of Cedar Hill, Texas, which is an affluent suburb community just south of Dallas, were living in million-dollar homes for less than $1,000 per month, according to a recent article in the Dallas Morning News.

It sounds too good to be true, right?

Well, it was — wily con artists were found to be behind the scam, renting out foreclosed mini mansions that they didn’t even own to unsuspecting tenants at rock bottom prices. The scammers would then collect the monthly rent payments until the local authorities or homeowners (banks) discovered the illegal activity.

That didn’t stop them from moving on, however, going from house-to-house and tenant-to-tenant in what authorities are describing as an “ingenious” plan to bilk the system.

Here’s a snip from local law enforcement officials:

“It’s so novel. It’s ingenious, really…. You have to have a somewhat sophisticated person to pull this off. There are holes in the system that allows it to be easy.”

Fortunately, it appears that the problem is being addressed now that scam has been uncovered.

In fact, the article indicates that a local pastor is currently being charged with “one count of securing execution of a document by deception in connection with renting a foreclosed home in Cedar Hill.”

Amen.

Texas foreclosure homes — Deal of the Day

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Location: Collin County, Texas
City: McKinney
Price: $305,000
Zestimateâ„¢: $455,347
Difference: $149,847

Note: Other comparable listings in the area range from $345,431 up to $913,141. For more property details or to talk to a local real estate agent/broker about this listing CLICK HERE.

There is a really nice four bedroom, four bathroom single-family home behind that massive tree … trust us. It’s also located in a great neighborhood.

To check out some of the other “Deals of the Day” feel free to visit our archive.

What’s the deal of the day? We comb through our nationwide database of more than 1.2 million distressed real estate listings to showcase some of the best investments available on our Web site each morning. These listings represent just a small fraction of the amazing investment opportunities available at Foreclosure.com. To find more bargains like the one pictured above search Foreclosure.com or sign-up for FREE Email Listing Alerts.