Real estate scams earnest money contracts

I have a contract for the sale of my home with a settlement date for the end of the month.

Earnest Money Agreement - For Sale by Owner

This man has done a home inspection, contacted the settlement company, and led me to believe that he truly intends on purchasing the home. The only hang up is that he has yet to give me an earnest money deposit-- therefore, I realize that we truly have no contract. He has said on several occasions that he intends on closing, and seems to be serious-- he contacts us the sellers without us prompting him. Every time he says that he will give the money, some sort of "glitch" occurs.

Is this some type of scam that I don't know about? Your email alert settings have been saved. Access all your email alerts in your My Trulia account anytime! Menu Icon Click to open Mobile Menu. Buy Rent Mortgage Sell Find an Agent For Professionals Local Scoop More Trulia Blogs Trulia Maps Trulia Mobile Advice Ask a Question Help Center.

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Is this a real estate scam or a serious buyer? Highest rated Recent Oldest. Thu Nov 15, This buyer may have every intention of closing. Doesn't mean he can. I once had a buyer like this. Come to find out, he had a recent bankruptcy in his past.

I had relied on the mortgage broker, who told me that he did have available funds he didn't. But it was very touch and go. Sounds like the guy wants the house but that doesn't mean he can afford the house.

Again, proof of funds. You don't need a deposit check or a deposit for that matter to have a valid contract. A promise to pay is consideration. When all else fails READ THE CONTRACT!

Is there an earnest money deposit IN the contract? When does it say it will be deposited with escrow or settlement? How long have you been in escrow? What's your escrow period?

How about the loan? Is he paying cash? When are all your physical inspections contingencies to be removed? Did he PAY for the home inspection? Or is it being paid out of escrow?

Does a buyer have to submit his earnest money with the offer? | Advice for Texas REALTORS® | Texas Association of REALTORS

Did he come back to you and ask for repairs from the report? Does anyone have any professional representation here? Ruthless , , Your a FSBO, right? Yes, the latest scams are targeting FSBOs. I'm not saying this is a scam, I'm just saying they search out FSBOs. I don't know Maryland's procedures but I'm wondering what information you have on the buyer. I would try and do a credit report and some investigating.

Are they from another country? The reason I ask is because if they get caught, they just fly home. They might give you a fake cashier's check, move in, take everything of value and skip town or sell the home to someone else.

Another possibility is to build you up, tie you up, and then offer you a much lower price. Because they never gave you EM, you do not have a contract. That means the price is not set.

The home inspection was to gather dirt to negotiate lower. These are just possibilities. I have no idea. Please tell us more about HOW they found your home, how many times they looked, what their stories are. Are you living in the home or is it vacant?

If it is vacant, there is even a higher chance that they are targeting you. If you are living there, don't move without EM and all contingencies waived. If you move, they will have more power over you to extort a lower price. Again, I don't know. I just know that I was approached by someone extremely suspicious.

The only reason the red flag went up is because I received a fake cashier's check a few months earlier for purchasing merchandise from my business to be shipped out of the country. Watch the movie "Pacific Heights" starring Michael Keaton, Melanie Griffith, and Mathew Modine.

It's a real horror flick for someone in your situation. Anyone who talks about being a landlord, I always advise them to watch the movie before they decide. If you would like to email me privately with an entire free flowing book of everything that has happened, I can see if I recognize any of the same things.

Linda Paone , , You state that you have a contract for the sale of your home. Is a deposit part of this sales agreement? And, if so this Buyer has violated the terms of your sales agreement by not providing the deposit.

Why would you ever sign a sales agreement without a deposit?

Watch out for this Scam (agents, settlement, contract, closing) - Real Estate Professionals - City-Data Forum

Now you are left wondering about your future. Let this Buyer know no money no house. Who are they getting financing from? Have they made mortgage application? Check things out and let this person know you are not willing to wait any longer for this deposit. I would contact the Settlement company and ask them if they have all they need to close. If you are suppose to close the end of the month they should have mortgage information for your buyer. I would then call your buyer and tell him or her that they need to give you the deposit money immediately or you will be putting your home back on the market.

They are out of contract if they have in the contract that they were giving you a deposit.

Earnest Money and the Real Estate Contract

Good luck with your home sale. Well, if he spent the money on inspection that's a start. Have you checked with the title company if he gave it to them directly? Has he given you a contact for his lender? You may want to contact them and ask them the status of the loan, if he is paying cash ask for a letter of proof of funds from his bank. My recommendation is that you continue to market your house as if you had no contract and if you get another one, give him an ultimatum.

It doesn't sound like a scam Is this for real or a scam? Is this real or a scam? Ask our community a question. Home Selling in Popular Cities.

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