Close Encounters of the Late-Night TV Guru Kind

Jack - You are SO right! That is exactly what I told my clients. I'm not the bank's mother, and if they actually do agree to this with full disclosure (which I doubt it was), then my job is to represent my clients, not the bank. But the buyers' only protection is the title insurance policy. One of the local escrow agents told me if the bank discovers fraud after the fact, they can unwind the deal. I'm sure in that case "Bob's" would step right up to the plate to pay off on that insurance....NOT!!!

Fernando - It is sad that there are so many of these "gurus" out there! In my opinion, they all push the envelope of legality (how's that for tactful?). Thanks for the subscription, I am honored!

David - Yes, I will post an update as best I can snoop it out. I love the Internet! So easy to search public documents and get the dirt on some of these "investment companies" and their associated gurus and business entities.

Renee - Excellent point, and you are exactly right! I was so busy worrying about the other aspects that I didn't even consider that.

Darrell - Thanks for chiming in, I overlooked that point until you and Renee brought it up. I am keeping extensive documentation of this fiasco, and will pass it along in the end if anyone at the Division is interested.

Michael - Thanks for your kind words, I think they are still holding out hope that there will be some way they can acquire this property. Like, the bank will be so pleased that we saved them all this money, that they will give us an award, and then foreclose and offer it to my clients for purchase. Ha ha, nice fantasy, huh? But I'm sure there is a house out there for them. And I think they now have a renewed respect for my ability to have their back.

Tere - You are right, these people are scary. They are totally brainwashed by their gurus and seminars. I really think it is the gurus promoting this nonsense and milking the uninformed for thousands of dollars to buy their program materials that should go to jail.

Robert - Convoluted indeed. I think that the details are being intentionally obscured, another huge red flag. When you can't get a straight answer and nothing is making sense, there is a reason for that.

Nona - Thanks. So much information is available with minimal effort, I try to know as much as I can about the properties. Not like the old days when you had to drive down to the county offices and look things up!

Maureen - Thanks, lol!

Tammie - I am not completely clear yet, so maybe not as smart as I should be, but I am most definitely covering my behind. Plan to speak with our state association attorney today

Rodney - Sad but true, I have seen those situations as well, and many sellers have heard of them and can't understand why they can't do the same thing.

Vince - Wow. All we really have at the end of the day is our integrity. Unfortunately, some of us have more of it than others.

Bill - Thanks for your comment, I definitely will be back with some follow up. I got an email today from the short sale negotiator for the bank thanking me for the heads-up. He passed along the info and suggested that they have another look at that file. Will be interesting to see what happens.

Donald - Thank you for your thoughtful response. I have no problem with investors making an honest buck, even a lot of them, with full disclosure to all concerned. That is not what I'm seeing here, which is what made me nervous. First of all, there was no disclosure to us whatsoever, in writing or otherwise; in fact, the paperwork has been very sloppy, and I only started sorting this out after doing my own research and asking questions. Most of my questions were answered in a vague and obfuscating way: for example, when I questioned the listing agent about the investor signing the paperwork, he stated that the investor had "authority". He said "that's the way it's done when you're working with these banks." POA was not mentioned, nor is one recorded. The only "authority" I see is the authority granted in the Memorandum of Sale, basically the owner's permission to market the property. It is possible that the investor in fact has a POA, but then what harm in saying so? C'mon, make us feel comfortable with this deal! As for what was disclosed to the bank, I have no way of knowing, but I have made the disclosures I felt were necessary and they seemed extremely interested to learn that the investor intended to already be in contract to resell at a much higher number than they were receiving at the time they closed with him. If they review it further and decide that what they are getting is good enough, well, like I said, I'm not their mother and my ass is covered. Eyes wide open, as you stated. I'm down with that.

As for the details in the memorandum, he (the investor) used a verbatim copy of paperwork created by a California attorney and sold at his seminars. I have no problem with that either, amateur hour like you said, although I wonder if it is legal in Nevada. Plus his potentially unlicensed status as a short sale negotiator is also an issue. Neither of these are really my problem as the buyer's agent. The title company, on the other hand, is absolutely my problem. I think your assessment of the situation is spot on. But I couldn't care less if the title company is "investor friendly." They can use whomever they want for the A to B part, but I can only think of one reason they would refuse to allow the end buyer to select their own provider of title insurance, and that is because they know no reasonable local company would be willing to issue it, or would ask a lot of questions. If everything is as legal and above board as they say, addressing those questions shouldn't be a problem. Instead, I was told "there won't be any problem with title because we will hold it for a month" in a condecending, don't worry your pretty little head about it sort of way, as if them holding title for a month makes all the mechanic's liens and property tax liens magically vanish, and buying title insurance from a company you never heard of will protect you if they go belly-up next week. My buyer's are putting a huge sum of cash into this deal, and they need the protection of the best title search and insurance they can get from someone I trust.