Posted by John Burley on April 07, 2002 at 18:49:47:
This is a very good reason why any monies that the seller is to receive should be held in an escrow account until such time as the transaction is ready to close.
We never give money directly to the seller unless all material facts and documents have been addressed with proper due diligence.
Good Investing,
John Burley
warning - foreclosure scam! - Posted by linda
Posted by linda on April 07, 2002 at 06:34:09:
I went to meet a seller at his house yesterday. He said it was set for sherrif’s sale May 31. This was a 5 year old house FMV of 145,000, He owed 95,000 on the 1st, 13,000 on the second and was about 5 payments behind on both. (red flag here - too soon for the sherrif sale)
My advisor recommended that I ONLY bring $10 to buy the equity & I needed to get notarized permission to negotiate and check his credit.
When he realized that I was only giving him $10 and that an attorney was going to be involved, he quickly ended our conversation, said he wanted a friend to check over the paperwork and I haven’t heard from him since. (This is a man who called me 6 times to make sure I was coming to look at his house)
Well it seems that a new (or old) scam is working in my area. These guys are calling ads, meeting investors, & pocketing the earnest money. I can’t even find foreclosure notices on this house and he conveniently forgot to bring them for me!
Just something to think about:(
Linda