My wife's friend just got conned out of 1000's of dollars

[waggy]

Originally posted by: PokerGuy
Aside from the question of whether or not you 'trust' an internet mortgage company, what I don't understand is how exactly you get conned out of your money when applying for a loan? Did I miss something??

You apply for a loan, they approve or reject the loan. They provide the money, and you start making monthly payments. If the mortgage company says "you need to pay us a bunch of $$$ up front and then we'll provide a loan", you have to be pretty darn stupid to not realize that you're being scammed. Serves her right for being a complete moron.

/nod

only time i have ever seen anyone haveing to pay anything it is closeing cost. but who knows with people with bad credit.

 

[Vic]

Originally posted by: PokerGuy
Aside from the question of whether or not you 'trust' an internet mortgage company, what I don't understand is how exactly you get conned out of your money when applying for a loan? Did I miss something??

You apply for a loan, they approve or reject the loan. They provide the money, and you start making monthly payments. If the mortgage company says "you need to pay us a bunch of $$$ up front and then we'll provide a loan", you have to be pretty darn stupid to not realize that you're being scammed. Serves her right for being a complete moron.

Well... it's downright illegal by federal law for a mortgage company to insist that lender costs be paid upfront and prior to closing. The only allowable upfront costs are application deposits (which may be non-refundable) to cover legitimate 3rd-party costs that could be incurred by the lender prior to closing, like appraisal and credit, usually around $350-$500.
As it is, $10k is seriously high closing costs for a $140k loan (higher than the legal "high cost loan" limit , in fact), so my assumption is that they thought they were making the down payment upfront directly to the lender.... ?? If so, that would be extremely stupid. I think the OP isn't telling us the full story or something...

 

[chambersc]

your wife's friend is a MORON! don't lend her a dime.

 

[SagaLore]

Wait a minute... see if you can answer these:

- Did they once ever talk to anyone on the phone? Or was all of this going over email?
- Why did they send them money? A lender might need evidence you can pay closing costs, such as pay stubs, checking account history, credit report, etc. Any money you pay them happens during closing, in the presence of a lawyer and/or notary.
- How did they not know it was in Canada? What reason did they give you they trusted this "lending site" so much?
- How did they pay this "lender"? Check? Money order? Wire transfer? Or did they fedex some Cash?
- What is the website they were going to? Can you give us the link?

 

[DaTT]

Originally posted by: waggy

Originally posted by: michaels
Before I start with the story they are partially to blame, because they are so irresponsible with money to begin with. They bounce checks all the time and try to live way above their means.


They had their eye on this house, 140,000 dollars. They got the money from some internet mortage company. I tried telling her it seemed fishy and I wouldn't do it. They put up everything they had, all money, borrowed money to get the loan. She borrowed a couple grand from her mom, her husband put three whole paychecks towards it and cashed in a weeks vacation. All together probably pushing 10,000. Well the money was suppossed to be deposited in her account Tuesday, but it wasn't. Now all of a sudden the number she was calling to deal with the company is no lobger in service and she found out they are based in canada somewhere. They have ZERO dollars to their name, two vehicle payments, 800 a month rent etc. They even sold off a bunch of their appliances because they house they were gonna buy was fully furnished.


She is gonna try to get a lawyer but I would bet she won't see any of that money again.

partially to blame? hahahahah yeah more like totally to blame.


first they are irrisponsible with the money. bouncing checks and living outside yoru means is not a good idea. 2nd she gives t he mortgage company $10k? WHY? that sounds just dumb. I have never seen or heard anyone having to pay the mortgage company (well besides fee etc taken at time of closeing).

seems to me a little checking out the company and how things work would have saved them lots of money.


but anyway. hahahahah they sold off appliances? hahahah good idea lets sale evertything BEFORE we know we have the money or house LOL

You know what else would have saved them money????? Switching to Geico.

 

[alkemyst]

Originally posted by: loup garou
Homeowned!

that was pretty good.

If the company was based in Canada you may have a case to get money back...if it was just using an Canada-base for something overseas, then you are probably out of luck.

good luck...even with B&M banks people are getting screwed everyday on loan products that let them think they are getting into the house only to find out in 1 year or so when the real terms hit they are screwed or worst yet when they go to sell in the typical 5-7 years, they owe more than the house is worth with appreciation.

 

[FoBoT]

don't read spam

 

[tyler811]

Originally posted by: michaels
Supposedly through lendingtree.com

I find it hard to believe.

After talking to several retarded bankers in our area, we went thru Lending Tree and received a mortgage rate a 1/2 percent lower lower then what any bank around here would give us

 

[intogamer]

Their entire life savings, things they had to sell/do and money borrowed totaled $10,000?

Are you serious?

 

[alkemyst]

Originally posted by: intogamer
Their entire life savings, things they had to sell/do and money borrowed totaled $10,000?

Are you serious?

I am not sure what you mean...most of the US has no savings/assets. $10,000 is not bad.

 

[kranky]

The big hole in this story is what made them think they needed to send money to the "mortgage company" in advance of closing.

 

[alkemyst]

Originally posted by: kranky
The big hole in this story is what made them think they needed to send money to the "mortgage company" in advance of closing.

Most ppl don't know, esp first time buyers. This is why they are easy targets.

Add in those with terrible credit, yet have had a major life turn-around...they also are willing to pay to play.

 

[imported_KuJaX]

Serves them right. I believe anyone that gets conned deserves what was coming to them. If you are stupid enough to get in that situation and go through with it, then you don't deserve what you were giving up.

 

[michaels]

They have horrible credit.

 

[alkemyst]

Originally posted by: KuJaX
Serves them right. I believe anyone that gets conned deserves what was coming to them. If you are stupid enough to get in that situation and go through with it, then you don't deserve what you were giving up.

I somehow think your parents think the same way.

 

[waggy]

Originally posted by: michaels
They have horrible credit.

well duh! if they didn't they wouldn't have had to go with such crappy mortgage company.


but that still does not change the fact that with a little common sense they would have had questions about what is going on.

 

[Kelemvor]

Originally posted by: Cattlegod
how did they find the internet mortgage company?

Probably from an email saying how they had the best rates anywhere and it only cost 0% down to guarantee the best rates...

 

[alchemize]

This makes no sense. Even with an internet lender, no money changes hands until the closing.

The payment is "your down payment" plus the "money you are loaned" to the seller. You never give your money to the lender. Unless you are a complete sucker I guess.

 

[DrPizza]

Originally posted by: michaels
Supposedly through lendingtree.com

I find it hard to believe.

Look through the archives for posts from me about 2 years ago. I went through hell because of a lender we obtained through lending tree. As soon as I read the OP, I thought to myself, "I'll bet they used lending tree."

To make a VERY long story short, I missed out on the deal of a lifetime because our broker lied through his teeth repeatedly. He fvcked up so many things, it was ridiculous. He didn't have a clue what he was doing. We ended up forced into a deal to refinance our first home in order to close the deal on the 2nd home. We pulled our kids out of school, because we were moving during the weekend and they'd be in a new district. Then, we found out the night before we closed - we weren't closing.

In my opinion: NEVER use lending tree... It seems that they attract the lenders who are desperate for business, rather than lenders competing for your business.

 

[Goosemaster]

Originally posted by: DrPizza

Originally posted by: michaels
Supposedly through lendingtree.com

I find it hard to believe.

Look through the archives for posts from me about 2 years ago. I went through hell because of a lender we obtained through lending tree. As soon as I read the OP, I thought to myself, "I'll bet they used lending tree."

To make a VERY long story short, I missed out on the deal of a lifetime because our broker lied through his teeth repeatedly. He fvcked up so many things, it was ridiculous. He didn't have a clue what he was doing. We ended up forced into a deal to refinance our first home in order to close the deal on the 2nd home. We pulled our kids out of school, because we were moving during the weekend and they'd be in a new district. Then, we found out the night before we closed - we weren't closing.

In my opinion: NEVER use lending tree... It seems that they attract the lenders who are desperate for business, rather than lenders competing for your business.

these are the f**kers that kept you from gettign the farm?! :|

 

[MazerRackham]

Originally posted by: loup garou
Homeowned!

ROFLMAO.

 

[alkemyst]

Originally posted by: alchemize
This makes no sense. Even with an internet lender, no money changes hands until the closing.

The payment is "your down payment" plus the "money you are loaned" to the seller. You never give your money to the lender. Unless you are a complete sucker I guess.

Think refinance and you may have to cough up some cash from the start.

Also some banks require the hard costs to be paid up front in the form of an application fee.

Again though, these people obviously did not know how the mortgage industry works so no matter what anyone else knows they were not part of that group.

 

[Conky]

But the company was backed by the Bank of Nigeria! :laugh: