Published on:

real estate fraud or a series of unfortunate circumstances?

Property: xxxxxxxxxxxxxxxx, Lake Forest, IL 60045 PIN: xx-xx-xxx-xxx-0000

Transaction involved the sale of a newly constructed home for a purchase price of $1,859,000. Loan amount was to be $1,487,200. Borrower”s cash to close amount was $277,841.38. On July 18, 2007 a closing was scheduled. Seller”s attorney and buyer (buyer had no attorney) were present. All lenders documents were signed and seller”s documents were presented. The borrower then stated he had to leave to get his cashier”s check. Buyer/borrower never returned with funds to close nor did he call. On Mon July 23, 2007 the lender cancelled the closing.

The closing was then rescheduled for July 26, 2007 at noon. Seller”s attorney and buyer (buyer had no attorney) were present and all lender”s documents were signed and seller”s documents were presented. The buyer/borrower had to leave to get his cashier”s check. The buyer/borrower left the closing at 1:30 and returned at 5:45 with an unidentified male. The closer requested funds from the buyer. The unidentified male had the checks for closing and seemed reluctant to present them to the closer.
The closer was presented: 2 cashier”s checks each in the amount of $50,000, 9 money orders each in the amount of $20,000 and 1 money order in the amount of $1,200. The closer felt uncomfortable due to hesitation to turn over checks and number and amounts of money orders. The closer consulted with the office manager and closing manager who decided to “dry close” until the next day so that funds could be verified. The closer returned to the closing table and informed the closing of the decision to “dry close” and verify funds. The unidentified male said “I am going to need those checks back, because I am the one who signed them. They won”t be any good tomorrow. I will bring you new ones tomorrow.” The closer returned checks to the unidentified male. The closer returned to the office manager to advise him of what she was told by the unidentified male. The office manager decided the transaction can not close unless the buyer”s funds were wire transferred. The closer returned to the closing table and informed the buyer and unidentified male of the office manager”s decision. The seller”s attorney asked for wire instructions and everyone left.

Fri Jul 27, 2007 the lender requested their wire be returned and package shredded.

Mon Jul 30, 2007 the loan officer and seller”s attorney tried to reschedule closing for a third time. The office manager consulting with underwriter decided to terminate Chicago Title”s involvement.

Published on:
Updated:
  • All About Bankruptcy » Blog Archive » real estate fraud or a series of unfortunate circu

    […] attorney and buyer (buyer had no attorney) were present. All lenders documents […]Read More… [Source: bankruptcy […]