Am I getting scammed?

**mynd66** · 09-18-2008, 04:26 PM

Hi my name is Ray, I'm 28 years old and I live in North Jersey. I have been saving for a couple years now to put a down payment on a home. Past year I have been going out with my agent checking out multi-family houses and even put a few offers on them. I found one 2-fam house that was going for 429k and I offered 385k. It was supposedly a short sale but the owner turns out to be this guy who also has a website official 911 forclosure.com. Off the bat he has his own contract and doesnt want the one from my agent who works for wiechert. Then he says that I should get a mortgage from his mortgage guy who I talked to. He ran my credit, got a 7.8, showing good income, and wants my w-2's, bank statements, pay stubs, etc. sent to him right away to "get the ball rolling". Then they tell me that if I use their attorney as well I can get attorney fees waived. Finally I get this email: (I blocked the names and stuff in case they are honest people)

Ray-I spoke with *mortgage guy* and he advises me you are a strong buyer. To ensure a fast, hassle free closing, the bank approved attorney is *Attorney guy*. He can be reached@ *phone number*. I am not sure if *mortgage guy* mentioned this to you, but the bank pays his fee. Please contact him and get the required documents to *mortgage guy* by Friday. I will need to show the bank a full commitment as they have set a closing date of September 26th, which I can only get an extension on with a full commitment.
If there are any questions you may have of me please feel free to contact me at anytime. I look forward to moving ahead and closing this purchase.

Best regards,
*seller guy*

Sept 26th??? today is the 18th... How can I close so soon? I have almost 10% to put down but not quite. How can I get an FHA loan that fast?? And I don't know much as I am a first time buyer but I do know I need home inspection, title search and i'm sure a few other things. It doesn't seem right. Anyway I have my own attorney who is looking at the paper work and I'm pretty much set against going with their mortgage guy.

Is it me, or am getting scammed?

**jamesww** · 09-18-2008, 05:38 PM

You may not be getting screwed but you are definitively being set up to be taken advantage of. Do not ever use an attorney that you are not paying as they truely represent whoever is signing the check. The seller sounds shady to me and the mortgage guy being forced on you will probably hit you with junk fees since you have no one advising you.

It is possible to close a deal in 8 days as there are programs that can be used for exceptionally good buyers, but it is very difficult. It is not possible to close a FHA loan in that amount of time. Title search can come back in a couple of days if needed. But it sounds to me that you are being pressured into be tied to contracts that will allow the potential scammers do a bait and switch on you.

Be very careful and at the very least have your own attorney and take heed to his advice. If you need a honest and ethical loan officer let me know and I can put you in touch with one. Don't sign anything without your attorney reviewing it.

If you have anymore questions feel free to ask them. But it might be best if you swing by the forum in my signiture to post your questions because I check that forum 2-3 times a day. I am on here much less frequently.

**Codythebest** · 09-19-2008, 06:49 AM

Well, if you have a contract in force, just read it. You may elect your own people though, especially if you have some doubts.
But, all this can be in your own advantage. He can close in 1 week or so, put it on the contract as addendum that : "closing should be by the 26th as per seller. Therefore, seller and buyer understand and agree that seller will pay a penalty fee of $500 per day after the 26th if the closing has to be delayed"
Since your earnest money is in your agent's escrow, you don't have to be afraid about that. It also could be "undestand by seller and buyer that using all seller's refferals party, buyer will not pay all and any fee in relation to this transaction"...blah blah blah...In short, he wants it his way, fine, but you won't pay for his way....
Seems easy as 1-2-3 for me....

**Greg** · 09-21-2008, 01:34 PM

Do not use the seller's contract!
Do not use the seller's lender!
Do not use the seller's attorney!

Be very careful here. A lot of times, implied urgency is a method for glossing over important issues.

**bg233** · 09-22-2008, 11:51 AM

I'd say be careful with this one, it seems they are trying to control the situation a little too much which sounds a bit risky for you.

**Homeland Assistance** · 09-22-2008, 04:46 PM

They sound to be very controlling.

**clemy** · 09-23-2008, 06:35 AM

What do you know about the seller's mortgage? Is it truly a short sale? If it is, it would be a miracle if the seller's bank could process their paperwork in such a short time period.

Also, it sounds like the seller just needs a "firm commitment" to satisfy whatever he is dealing with, so that could be the sales contract, not a completed deal.

Go slow. It sounds like the seller needs things to happen quickly, but isn't explaining why. Use your own service providers and stay away from his. You need your people on your side not his.

**mynd66** · 09-24-2008, 04:17 PM

hey thanks for the replys. I got my own attorney whom was recomended to me by a friend and my agent. He advised me to get the mortgage from my own guy like I had planned. If they won't sell me the house cause of that then they can keep it. He reviewed the contract and said that it was ok to sign it as long as I got my home inspection within the next couple of days. The contract could be canceled within 3 days. I had an independant home inspector go through the entire property with me today and didnt find any major problems. This 2 fam house is vacant and the water and gas is off. My agent is supposed to contact the seller to get those turned on then I need someone to inspect the furnace. So just like you guys were telling me to get people working for me... thats what I did and its alot more reassuring. I hope there are no suprises and its not too hard to rent. Thanks again. -Ray

**fmike630** · 11-01-2008, 05:07 PM

has to be listed as a short sale. Specific guidelines need to be followed.
Sounds like to me he lists short sales and tries to do a dual close and make money off the seller. Is he a realtor or broker? If so he is not suppose to be recommending who you should use. You can use your own title company,mortgage company, and lawyer.

Sounds like he needs to be reported if he has a license