unsold for several months. They were thrilled to get a cash offer for the $400,000 house from a couple. The buyers offered a proof-of-funds letter from a brokerage firm. The buyers’ extended family turned out for the home inspection. It was like a holiday open house. Later, the brokerage informed the agent that the proof-of-funds letter had a forged signature. The would-be buyers vanished, but the agent reported their extended family verbally abused her, the sellers, and the buyers’ agent.
The agent now makes sure she verifies proof of funds and prequalification letters.
Homes Not Researched
In a transaction without the involvement of real estate agents, a woman purchased a home in a rural area. She found out two years later, when she went to list the home for sale, that it had once belonged to a person who was in jail for producing methamphetamine onsite! The revelation also obligated the homeowner to take the necessary steps of decontaminating the home and ensuring it was fit for resale, costing her a whopping $16,000 in the process.
Preclosing Error: Large Bank Deposit Causing Delay
A couple buying a seller’s home deposited $8,000 in cash into their checking account three days before closing. Their father had given them money to buy new furniture and appliances for the house. Their mortgage company checked balances the day before and it was “dinged,” as it required a gift letter. The father had just gone to the UP of Michigan for a hunting/fishing trip and no one could reach him. This delayed the closing by two weeks.
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