I need some help with this one ASAP I just close on this property on Thursday… Before all this let start from the beginning… My Real Estate Agent that sold me three of my last four houses came to me with a house that needed a little work about $3000.00 to $4000.00 thousand should me that the house was worth $138500.00 I needed to $500.00 for earnest money, $300.00 and 48 hours after closing I will receive a check $18000.00… I took a look at the house and the numbers a sounded good… I told her lest d o this… The next day she came by my office to get two checks $500.00 for earnest money, $300.00 for the appraisal… Two days after that she call me and said that the seller was only giving $15000.00 I did not think anything of it and I said okay… Three months later we are it the closing she brings me a new contract with an assignment of $19000.00 I look at the paper and did not say anything because the seller was sating right there… Anyway the attorney office where we were doing the closing did not agree with the assignment so that amount was given to the seller… The seller wrote me a check for $19000.00 my Agent then call the seller and said that she is committing mortgage fraud by giving me the check… So the seller stops Payment on the check… I spoke with seller today and she is very upset with the agent…
The realtor should lose her license. You can file a claim against her company. She is required to carry errors and omissions insurance.
Thanks
mtnwizard
WARNING WARNING WARNING
My sister got into one of these deals. The agent (who unknown to us also was owner) together with the appraiser, title co and notary “sold” two houses to her at above market value, leaving her with two big notes and no way to pay them off. Apparently he has done dozens of these deals in TX over the last 2 years.
Here’s the real rub. Sis never went to a closing and never signed anything. Of course, that didn’t stop this guy. He forged her signature on closing documents, absconded with the money and she didn’t know anything until the banks started calling for payment!
$20,000 of atty fees later she finally has a hollow judgement against the guy for fraud and forgery. He is probably in the Bahamas right now. The banks are pissed because they’re left holding the bag on worthless notes. Her credit is SCREWED and she’s on the verge of bankruptcy.
Run. Run very fast.
I need to sue a broker company that mess up a deal and is costing money and I don’t know where to start… I have called a few lawyers but for some reason I call the ones that can not help me… Need help… I live in Georgia…
I was looking forward to someone pointing me in the right direction…
What did the real estate agent’s broker tell you when you complained about that agent’s actions? I bet the broker will try to make things right with you before you file a complaint against his agency with the Board of Realtors for your area.
When I spoke with the broker she told me that they were taking action against the lady that sold me the house to get the money… this what she said that I did not like… “the agent that sold me the house were the one taking the lady to court to get the money”… I don’t know what to do right now…
Apparently, there are more details behind this story than you have told us. If the agent is taking legal action against the seller, perhaps you should consult your own attorney to see if and to what extent you could become involved since you were a party to the deal.
I have given your all the information… The reason I think I’m having problems is because the seller had given me a check and my agent told her to stop payment on the check… Every time I talk with a lawyer and tell them what happen they tell me that they can not help me…
You were the one that got a mortgage on the property right? And did not tell the mortgage co. you were getting money back.
I can make a good guess why problems with a lawyer.
You are the one commiting loan fraud and the seller was helping you.
You are asking a lawyer to go in front of a judge and ask for judgement against seller because they did not help you commit a crime. Ignorance of the law is not a defense. Also would guess why the Broker does not want to get involved.
there are ways to do this and get by with it but does not sound like it in your case. Only option is let realator handle and hope for the best. If you go to court you have to admit to a crime.
Also if it was I with your problem, I would only see one possiable solution to cut loss.
Ask seller to pay the money to loan company to pay down loan so seller cant use fraud as a defense.
Otherwise you are asking a judge will enforce a contract to commit a crime. In all states this type of contract is void.
Let me set something straight… When I was getting this loan for the house I did everything that was asked of me… My agent was the one who mess everything up because she was trying to make a couple of thousand dollars… My agent and the lady sign the contract where the seller was giving me the money for repairs on the house but my agent did not turn in that addendum to the mortgage broker so the bank did not know about it… I did not fine this out until we were at closing… My then to that the seller and I should work it out and we did… Everything was fine until my agent call the seller and told her to stop payment on the check because she was commenting mortgage fraud…
Unfortunately if the bank did not know you were getting money back for any reason you will be the one they hold responsible. Most banks would not agree to the loan unless paid directly to a contractor, or they would make the loan amount that much less. If they think it was not intentional mortgage fraud, then they will either ask you to pay down the loan amount by the 19K or call the loan due and at least charge you for all fees including extra fees & expenses for calling the loan. All of which they are entitled to do in your loan documents. Then in a separate case you could then go after your realtor or loan broker if have the time and money and can prove your case.
Your problem is why in my state we use an agent like a lawyer to do closings. The seller would never have actually received the extra 19k. It would have been paid directly to the person the contract stated it should be paid to.
Does not make any difference if intentional or not you still have about the same result.
Also you did not say why the realtor said she told the buyer it was fraud. What was her excuse?
Sounds like it may have been a dishonest realtor. I am guessing a lot but did she have a separate deal with the buyer where they would split the extra 19K. After she knew that she had steered you to commit mortgage fraud and you would not have much of a case and hoped you would drop the matter.
So what would happen if an individual had a contractors license in a LLC and the owner of the corporation was the individual buying the house?
I am a rehabber and investor that does much of the work myself and I would like to find a legal ethical way of getting cash back at closing. On many occassions I can find a good deal that makes sense if I can do one closing.
For example I submit an offer on a house for $100K and it needs about $20K of work and the ARV appraisal the house is worth $150K. If the offer was contingent on the repairs beeing done by XYZ LLc before closing and the XYZ LLC would collect the $20K at closing? My personal loan would be approved for the $150 less any downpayment required. What flaws do you see in this concept? The lender would be aware of the contingency not neccessarily that I was the owner of the LLC construction comp. My experiences are if anything can go wrong it will.LOL
NDI
Just make sure there is a good title in case closing dosent happen. Dont want to invest alot and then dont close.
With most banks would be a problem if they found out you are connected to the LLC. So you take a chance. Some will loan on appraised value only. Most will loan on the lower amount. Appraisal or What you paid cost plus materials but not a thing for the buyers own labor. I am also a contractor and do my own work and some subcontractors.
To be safe I most often have the closing check for repairs made out to another contractor i know. I give him $100.00 and he signs over the check to me. So it could be said he got the job/work and he paid me to do the work after closing. But you should really trust the contractor. Or do it your way but make sure your lender will loan on appraised value only.
When doing these deals find it best to use a good loan broker. Last deal I had everything seemed fine until 2 days before closing. Bank decided a last minute did not like the price difference between what I was actualy paying and appraised value. Had I good broker with connections to a few different lenders. So 10 day delay and closed with a different lender with same original terms.
Thanks Rayh78. It does sound like it’s a viable option.
NDI