"MY FINANCIAL INFORMATION IS NOBODY’S BUSINESS BUT MY OWN!"

Here's a new wrinkle, at least for me.  My most recent buyer customer found a nice piece of land he would like to purchase so he can eventually build a home on it. 

His dad owns a restaurant and has turned it over to him, mentoring and advising him as he learns.  About 3 months before contacting me, dad took his son "off the books", and now the book-keeper (cousin) would have to create a paper trail that a bank would find acceptable in order to finance a mortgage for him.  He has about $25-30K to put down on the property, but no documentation of his income.  They have it set up where he gets paid, somehow, but it's "not on the books."  ??????  Someone more informed in business models than I will have to make that one make sense to me.  And good luck with that!  My mind tends to work on logic and common-sense.  Somehow I don't think this one qualifies. 

After consulting with two separate lenders, each of whom explained in detail the need for his financial information, alternate credit proof, etc., I thought Mr. Customer finally got the message.   Boy! Was I ever wrong!  He just faded into the woodwork and was upset with the lenders.  I proceeded to not think about him much because I did not consider him a serious client, considering his attitude.

One day, the seller's agent, great guy that he is, proved he had really been working with his clients.  He called me out of the blue and informed me his sellers would be willing to finance the purchase for the buyer.  Wow!  That's great!  What more could you want, right?

Well, I called Mr. Customer, and he seemed thrilled... told me what he wanted to offer, some information he needed about the property as far as utilities, etc., and I went to work compiling the information he wanted, and informing the seller's agent that we were working on making an offer and accepting their generous offer to finance the purchase for my client.  I then received an email from the seller's agent with an attached financial disclosure form, which I forwarded to Mr. Customer with a personal note from me to the effect of "How wonderful of them to offer to do this for you!"

Days passed.  No responses to my emails or my phone calls.  None.

Finally I got him on the phone at work.  He told me in no uncertain terms that he "would not be filling out any financial information for anyone.  That's why I got so upset with those 2 lenders.  Whatever happened to writing a contract, accepting my down-payment money, and letting me pay the bill every month?  My financial information is nobody's business but my own!!!  When they are ready to accept my offer and my money without having all my financial information, let me know!"  BTW:  he had no intention of paying the list price, which was definitely a fair asking price.

Well, I have informed Mr. Customer that I will no longer be representing him.  (and yes!  I am just as hungry as the rest of you are, but I will not work with this type of person.  Who knows what the story really is, or what other problems would be presented going forward?)  My integrity is more important than the $1700 paycheck I would have eventually received for the sale.

How would you have handled this? 

NOTE TO HOME-BUYERS, whoever you are and wherever you may be:  

You can no longer get a mortgage without providing documentation of your financial situation.  No-Doc loans have gone the way of the dinosaur!  And if you are fortunate enough to find a seller (of anything) who is willing to finance it for you personally, you must understand that they are going to want to see some kind of proof that you can make the monthly payments going forward, just like any lender would.  Would you give credit to some unknown stranger without doing the same yourself?  I highly doubt it! 

When you are buying real estate, your financial information IS somebody else's business besides yours.  That is simple common-sense!