Expert: Karyn Foley - 7/15/2008

Question
QUESTION: I just found your site, and many years ago a transaction in regards to an escrow being paid outside in the amount of over $28,000.00 was paid to seller.  I wasn't aware at the time, and only recently found this out.  This was for a home in 1978, what could possibly be the reason for this? I thank you for your time on this ..
Sincerely and with unceasing blessings,
Michelle

ANSWER: Dear Michelle:  Simple answer:  fraud. If you wish to pursue it, that is a statue of limitations with reference to fraud, but the time clocks starts ticking from the time of discovery of fraud.  I would contact a real estate attorney for details and direction to take.  Unfortunately, there are major cases now, here in the Los Angeles, that are taking place for issues like this.  Indictments and law suits.  Karyn Foley

---------- FOLLOW-UP ----------

QUESTION: Dear Karyn,
Thank you for getting back with me so quickly.  This was my exact thought, so I went to the seller and asked..  I believe you are correct for the answer I received was misleading, evasive, and never did get an answer to the $28,000.00 question..
once again Thank you..
Sincerely and with unceasing blessings,
Michelle

Answer
I am hoping that you will do something.  It is people like that seller who gives the real estate professionals a bad name,  Sellers like that who give misleading information that later causes problems for other sellers and buyers because of phony comparables.  And sellers like him who contribute to these mortgage meltdowns.  Congratulations on uncovering this, and please consider continuing with this issue!  In an instance like this in this area, not only is it alledged that the seller reaped secret cash, but that the buyer and mortgage broker and agents did too.  Not yet their day in court, but several have already been indicted.  We are all watching and waiting.