HELP!!! (how do i get out of this) - Posted by vick

Posted by Greg on July 09, 2006 at 19:57:26:

I disagree with Sailor on this one. I haven’t heard anything to suggest that any wrong-doing was occurring by the seller or the seller’s team. I am not convinced that it is just for them to pay for the buyer’s team being incompeant or fraudelent.

HELP!!! (how do i get out of this) - Posted by vick

Posted by vick on April 09, 2006 at 13:04:56:

Hello all,

I have a big dilemma. Months ago I decided it was time to move out of my parent?s house and buy me a place of me own. I got the help of an agent that I found in the phone book. Eventually I found a two bedroom condo for 195,000 as-is. Before initiating a contract I rapidity asked for the comps in the area but every time I did she would say she checked them and assured me that it was a good price for the condo. Reluctantly but on her advise I signed a contract to purchase the condo. In the contract she put that I would receive two mortgages ( 1 for 80% and the other for 20%) both would be adjustable with an initial rate at 7.5%. She said that if I got a rate above that I could use that as a means of getting out of the contract. I decided to got with a lender who my parents have been using for two homes they have but my agent told me that I should go with a mortgage broker that she knew because she could get me approved and even get me approved for up to 3 properties at one time( i know…red flag). Later on that day the loan officer sent me an email along with my credit report that she pulled without my permission or before even speaking with me to find out what I wanted to do. 2 days? later I received a pre-approval letter for 175.000. After I told my agent about how much I was Pre-approved for she called the loan officer and 2days later I received another letter with the same date on it as the first one pre-approving me for 300,000 which I know I couldn?t afford. According to the contract the seller was supposed to furnish the condo documents within 10 business days from the date of ratification of the contract. He took 3 weeks but the agent made excuses for him and said that I shouldn?t try to get out of the contract because of something so small and she never told me that I had 3 days from receipt to get out. I went to another agent who ran comps in the area. I was horrified to find out that condos that were just like this on was going for 135,000 to 170,000. Shortly after I was told that I was approved for the loan when I asked what type of loan I was receiving I was told by the loan officer that She was looking out for me and she would explain everything. that was 4 weeks ago and I still haven?t received any type of paperwork from them or been given an explanation of the loan or the terms of the loan. I don?t know anything about what I’m getting. After the approval came back A settlement date was setup. I showed up that day and time but no one was there. I spent a hour outside of the settlement office frantically trying to contact my agent and the loan officer because I thought I may have been in the wrong place. it was only when I reached my agent that I found out that The settlement was cancelled. No one bothered to tell me. Last week I called to tell my agent that I was walking away from the deal. She informed me that I would loose my 1,000 deposit (but that okay). The next day I got a call from the loan officer accusing me of stringing everyone along and if I walked away I would be sued by everyone involved. I spoke with my agent who said the owner was threatening to sue me and if I didn?t go through with the deal I would be sued for 45,000. I think my agent and the loan officer is taking advantage of me in order to make money because I am ignorant to buying a home. Settlement is wed at 3 what should I do.

Re: HELP!!! (how do i get out of this) - Posted by vick

Posted by vick on April 11, 2006 at 14:32:40:

I tried to sit down with the RE Agent yesterday. When I told her about my concerns and the Mortgage broker she became very agitated and got nasty and was very unprofessional. I’m convinced that something is going on and she?s trying to cover it up. She asked me why would everyone be out to con me into buying this condo. She said they don?t even make hardly money off of the sale anyway. I had to walk out because of how she was acting. She called me last night and this morning but I didn?t answer when I saw her number. She left this message asking me to call her back and was acting like nothing had happened. I refuse to talk to this woman anymore. I have an appointment with an attorney tomorrow at the same time as the settlement but I’m going to be at the attorney?s office.

Re: HELP!!! (how do i get out of this) - Posted by Sailor

Posted by Sailor on April 11, 2006 at 14:06:28:

You need to make to appts: (1) RE (not just any) attny; (2) your agent’s broker. Yes, you were woefully remise, but it appears others are attempting to take advantage of your lack of knowledge. The agent’s broker is responsible for the agent’s actions, & the broker’s license is worth a lot more than an agent license. The broker can make this go away & get your $$$ back, but you’ll need to have the name of your attny to get them to take you seriously. I would also contact your state board of realtors & file a complaint. There is a surprisingly large # of shady agents, though many are just incompetent based on ignorance. These folks often don’t stick around long, but they can cause a lot of damage while operating. Do what you can to keep this from happening to others, but most importantly, do what is necessary to educate yourself so you make wise RE decisions in the future. We all make mistakes, but protect yourself by learning from each error. A summer school class, to start, might be the best investment for you now. Good luck!


Re: HELP!!! (how do i get out of this) - Posted by colvegas

Posted by colvegas on April 09, 2006 at 17:21:25:

First off get immediately with a good R/E attorney to help advise you on this situation since I can not give out legal advise on this.
This agent sounds unprofessional and I bet you can get her license revoked due to non-disclosure, her not representing you in the deal etc.
From my understanding you have NO obligation to sign this contract and even if you did in most cases you have 3 days rite of recision to cancel the contract so no worries and do NOT sign if you do not know the loan you are getting since it sounds like they are doing a mortgage fraud I not 100% sure but it sounds like the appraiser is overvaluing the property and if you sign not knowing you can be part of this intended fraud on this unsuspecting lender.
I know how these are done and what they may be doing is not disclosing the difference between the purchase price on the purchase agreement and the loan amouint especially if this is a 100% LTV loan so be careful…find out what is on the HUD 1 form and if the amoounts are not right the escrow officer who is handling is should know I do not know ths state if you are in a mortgage state check with the attorney who is handing the closing…
YOU do NOT have to sign docs but you can lose your earnest monies but due to the way this deal was handled I bet you could get that back from the seller since it sounds like you have some real recourse.
I bet you are right and you can call the state office of mortgage and industry to file a complaint and if there is some activity they may investigate or the attorney general…
If you wish feel free to call me at 702-400-7632 I wish to help since I have been in your shoes in a different way …
Of course I like to hear MrBronchick,Mr Sutton or Mr Merchant’s take on this and the other legal experts on this forum.


Re: HELP!!! (how do i get out of this) - Posted by Sailor

Posted by Sailor on April 12, 2006 at 15:03:31:

It isn’t the agent w/whom you need to talk; it is her broker. Make sure your attorney specializes in RE. If he/she doesn’t, you may be wasting both time & $$$. I wouldn’t just be a no-show @ settlement. Advise the broker & mortgage broker that you cannot meet w/them because you have a conflicting appt. w/your attorney. I would also directly contact the seller. Agents don’t like that, but it is your deal & you are not bound by law or ethics to follow their druthers. Either the seller is a total innocent who is also going to get hurt, or the seller is in collusion. Remember, it’s a good idea to act professionally even when others do not–


Re: HELP!!! (how do i get out of this) - Posted by Natalie-VA

Posted by Natalie-VA on April 09, 2006 at 20:59:50:

The three day right to recision only applies to borrowers who are refinancing their personal residence. It does not apply to purchase transactions.

I am not an attorney.


Re: HELP!!! (how do i get out of this) - Posted by vick

Posted by vick on April 12, 2006 at 19:40:26:

I called the Mortgage broker and told her I wouldn?t be able to make it to the settlement. I also met with the lawyer today but I don?t think he’s the one to go with. $2500 retainer to send a letter to the seller?s agent saying that he’s going to represent me and asks to terminate the contract and return the $1000 deposit but he said they could return the money and the seller and broker can still sue for damages. I just want to get out of this without being sued and I’m nervous about going with this guy because I don?t want to cause them to sue me if they have no intentions of doing so in the first place. I don?t care about not getting the money back I just don?t want to get sued. I also found out that the sellers agent and the seller are related (the agent is the sellers son). I called my agents broker and he said he will call me tomorrow so we can talk about it. I thought about calling the sellers agent but I didn?t know if I should do that since you never mentioned about talking with him. I dont know if I should just wait to see what happens or what.

Re: HELP!!! (how do i get out of this) - Posted by Sailor

Posted by Sailor on April 12, 2006 at 20:28:18:

You don’t want a phone call from the broker. You want a sit-down 1st thing in the morning. Show up @ 9 am. In any negotiation you want to know (1) what you want, & (2) what you are willing to accept. If this was me, (besides the 40 lashes for being not too bright about this) I’d want: (1) termination of the contract; (2) my 1k deposit on the spot, (3) an apology from the broker & the promise that this would never happen to another client. I would accept: #1 & #2. If I did not get #1 & #2 I would restate my position, & spell out my plan of action against BOTH brokers, both agents & the mortgage broker. The very 1st step would be to put the case, & again the request for compensation, in writing. Step #2 is to file complaints w/all relevant regulatory agencies/boards. Step #3 is a small claims complaint against all parties, including the colluding seller (someone won’t show up, so you’ll get the judgment). I would file for 1k + costs on the deposit + your state’s maximum in punitive damages. (Dealing from a strong position could still get you 1k prior to court.) I wouln’t act injured or outraged throughout; being a victim didn’t get you very far to date, so it is time for another tactic.

What I would do TONIGHT is to write down all the details for your own reference + any future actions, & PRACTICE stating your position. Know your goals & your fall-back position. Take crib notes so you don’t falter in your presentation.

I’m not an attorney, nor do I know all the details of your situation, but the above is what I would do. Good luck, & remember, if all else fails you’ve gotten a very cheap education–


Re: HELP!!! (how do i get out of this) - Posted by Vick

Posted by Vick on April 13, 2006 at 12:24:52:

I took a chance today and called the sellers agent and talked to him about what was going on. Good thing because he was getting ready to start legal action against me on behalf of his client who is also his father. He knew nothing about what was going on and they thought I was just stringing them along only to leave them hanging at the last minute. I told him everything. After talking with his client he called back and said that he sent a release over to my agents office. He just wants his condo documents back and the $1000 deposit as liquidated damages.

Re: HELP!!! (how do i get out of this) - Posted by DoubleJ

Posted by DoubleJ on May 02, 2006 at 11:26:40:

Call the Department of Financial Regulation as soon as possible to report the mortgage broker.

You should have full disclosure from a mortgage broker within 3 business days. If you dont have that, there better be a GOOD reason.

Re: HELP!!! (how do i get out of this) - Posted by Sailor

Posted by Sailor on April 13, 2006 at 13:10:24:

Why give up the 1k? If you indeed were victimized, there is no need for you to pay any $$$. Involve the BROKERS to get what you want. If that doesn’t work, get the state involved. Talk to the DA. If, however, you were just silly, & not victimized, take your lumps/education & go learn what you need to do to protect yourself next time. Good luck!