Should I Avoid This Lender?

7 Replies

Hey BP,  

A lender reached out to me with what seems to be an attractive loan program. 1-15 year terms, 6 percent starting rates, even 100 percent funding. Only thing that made me hesitate was he requires a 20 percent downpayment that doesn't go into an escrow account and is apparently reimbursed once the loan is funded. I checked reviews on his services and they seemed legit so that's why I'm wondering if this is normal and just something I've never heard of before. I've got plenty of funding sources but as I stated, he reached out to me and provided details. 

Any feedback on this would be appreciated. I copied some of the conversation. Thanks!

Victor Gratha


You go through it and get back to me if you are in agreement with it so i send you my loan application form to fill up and i will start working on the loan approval

John

What is the percentage of the down payment?

Victor Gratha

Loans from $20,000 to $100,000 cost 10% of the total funds you will be needing loans above $100,000 to $500,000 cost 5% and loans from $500,000 and above cost 1%

Victor Gratha

Are you in agreement with my terms and conditions so i send you my loan application form to fill up

John

Does that down payment go into an escrow account? Everything looks good, but I’d like to look a bit more into your company before making any type of agreement. It sounds like an excellent program, and for that reason I have to do a bit more due diligence before submitting an application.

Victor Gratha

Okay. I do not work with escrow. You get back to me when you are ready

John

So the down payment goes into your company’s account and then is reimbursed at the time of the loan disbursement?

Victor Gratha

Yes but the loan has to be approved first before getting the down payment paid

Originally posted by @John Cantu :

Hey BP,  

A lender reached out to me with what seems to be an attractive loan program. 1-15 year terms, 6 percent starting rates, even 100 percent funding. Only thing that made me hesitate was he requires a 20 percent downpayment that doesn't go into an escrow account and is apparently reimbursed once the loan is funded. I checked reviews on his services and they seemed legit so that's why I'm wondering if this is normal and just something I've never heard of before. I've got plenty of funding sources but as I stated, he reached out to me and provided details. 

Any feedback on this would be appreciated. I copied some of the conversation. Thanks!

Victor Gratha


You go through it and get back to me if you are in agreement with it so i send you my loan application form to fill up and i will start working on the loan approval

John

What is the percentage of the down payment?

Victor Gratha

Loans from $20,000 to $100,000 cost 10% of the total funds you will be needing loans above $100,000 to $500,000 cost 5% and loans from $500,000 and above cost 1%

Victor Gratha

Are you in agreement with my terms and conditions so i send you my loan application form to fill up

John

Does that down payment go into an escrow account? Everything looks good, but I’d like to look a bit more into your company before making any type of agreement. It sounds like an excellent program, and for that reason I have to do a bit more due diligence before submitting an application.

Victor Gratha

Okay. I do not work with escrow. You get back to me when you are ready

John

So the down payment goes into your company’s account and then is reimbursed at the time of the loan disbursement?

Victor Gratha

Yes but the loan has to be approved first before getting the down payment paid

That's a big red flag to me.  Now way am I wiring money to some companies account.  This is doesn't seem right at all.  Appraisal and credit report are the only fees that can and should be asked for up front.  Not 20% down!

 

That is why this scam continues to even consider wiring money outside an escrow is insanity.  Greed makes you stupid  Your money will be in some off shore account before you know it   -----

Yeah, the down pay,net thing is whackadoo.....”you send us 10-20% now, we refund it back when loan is funds”....absolute scam.  And if those excerpts from above are actual copies, with all the grammatical errors and misused words.....”so I send you” “...application form to fill up..” this definitely some out of country scam where they don’t know English or proper loan terms.

I guarantee you that you can’t find a mortgage recorded anywhere from a loan they have actually made.

Originally posted by @Wayne Brooks :

Yeah, the down pay,net thing is whackadoo.....”you send us 10-20% now, we refund it back when loan is funds”....absolute scam.  And if those excerpts from above are actual copies, with all the grammatical errors and misused words.....”so I send you” “...application form to fill up..” this definitely some out of country scam where they don’t know English or proper loan terms.

I guarantee you that you can’t find a mortgage recorded anywhere from a loan they have actually made.

My thoughts exactly on the grammar. Those are copies. 

 

@John Cantu sorry but the way he is even talking to you is a big red flag to me. Downpayment is never given upfront period. Please move on...and no one is offering those types of terms. No legit person at least too much risk to offer 100% for that long of a term and low-interest rate.