Posted by Keith on December 22, 2003 at 19:15:04:
The broker is licensed. I will complain the the state agency. What broker(s) can I find to assist in this situation. I will have to move very quickly to meet the demands of the seller. I talked with the seller and his is willing to extend on the condition that I am able to come up with $100k to satisfy some other debt he currently has in 3-4 weeks. Any suggestions?
Fraudelent Lender: What do I do - Posted by Keith
Posted by Keith on December 18, 2003 at 08:38:53:
I recently bought some commercial property which is doing quite well. The seller did a carry back of approx 35% to do the deal. We did it based on a broker promising to help us refinance and pay off both the 1st and 2nd notes in 6 months. Well after six months this has not happened and the seller will begin foreclosure proceedings in about 2 weeks. Up until a week ago we were convinced that the refinance would happen but the broker always would tell us the funds will be released in a few days and it wouldn’t happen. So now we are not sure what steps to take to proceed since now we seem to be in a legal matter. We are not sure what steps to take to proceed. DO you have any advice?
Regards,
Keith
Re: Fraudelent Lender: What do I do - Posted by Michael
Posted by Michael on December 18, 2003 at 12:30:32:
Did you sign any documentation? What I am trying to understand is that the broker promised or did he get the loan approved and you are waiting for funding.
Re: Fraudelent Lender: What do I do - Posted by Keith
Posted by Keith on December 22, 2003 at 12:16:46:
I signed an letter of intent. The lender also sent a number of messages indicating that the funds would soon be released and we would get final documentation.
We had dealt with this lender before and he had performed quite well. So we weren’t alarmed until we got closer to the deadline.
Look forward to your reply.
Re: Fraudelent Lender: What do I do - Posted by Nate(DC)
Posted by Nate(DC) on December 22, 2003 at 15:41:17:
A “letter of intent” is NOT a loan commitment. If it doesn’t fund, I doubt you have much recourse against anyone.
NT
Re: Fraudelent Lender: What do I do - Posted by Michael Cowan
Posted by Michael Cowan on December 22, 2003 at 13:21:22:
Since there is no loan documentation signed, it sounds to me like the broker does not have the deal approved. Therefore, no loan and no funds. The broker may not be communication what the lender is doing. Thus, leaving you in the dark.
I would advise buying some time from the seller and go elsewhere to get financing. It never hurts to have a backup lender.
Also, you can check to make sure the broker is licensed in the state you are at. Brokers have to be operate with a license. If so, complain to the state agency, and if not, report him or her.