I had a poor experience recently with a wholesaler, but I'm beginning to suspect the Title company used (Title Alliance of Phoenix) supports the wholesaler in their misleading approach. The review below has been submitted to the BBB and posted on numerous review sites.
I was contacted by Phoenix Home Buyers Club, who made an offer to buy our house. Their contract referenced using Title Alliance of Phoenix, specifically Danielle Mauzy. Since they were a wholesale buyer, my wife and I were skeptical. So I contacted Ms. Mauzy before signing the contract to ask about her previous experiences with Phoenix Home Buyers Club. She said (paraphrased), "I can't remember the last time they didn't fulfill a contract." The rest of what she said led me to believe that Phoenix Home Buyers Club had every intention of honoring their offer on our house. Instead, Phoenix Home Buyers Club backed out the day before closing, which, in full disclosure, was their right according to the contract I signed. But it was clearly misleading, and the actions of Ms. Mauzy and her colleagues make it seem as if they were fully aware of the intentions of Phoenix Home Buyers Club. I contacted them two times only a few days before the closing to ask for more details, and my call was never returned. Since Phoenix Home Buyers Club backed out of the purchase within the set conditions of the contract, they were not required to forfeit their earnest money. But considering the behavior of Ms. Mauzy and her colleagues, I am beginning to doubt whether or not they ever took Phoenix Home Buyers Club's money into escrow at all.
While not illegal, the behavior of Phoenix Home Buyers Club was misleading and not in good faith. And I suspect that Ms. Mauzy and Title Alliance of Phoenix were aware of that. A reputable title company should not be working so closely (by Phoenix Home Buyers Club's own admission, they give Title Alliance of Phoenix an incredible amount of business) with an industry that misleads people about their most precious investment.
This is horrible. I am so sorry for your bad experience. Title Companies are supposed to be neutral parties, but it sounds like they didn't offer you the same type of relationship that they did to the wholesaler.
This is why having a Realtor is so important as you have someone to look out for your best interests, which obviously doesn't happen with a wholesaler wanting to buy under market in order to resell your home and make a profit. My guess is that the wholesaler couldn't get a Buyer at the higher price fast enough to perform on the contract, so they bailed.
I think that wholesalers may have issues in the near future as the Department of RE is starting to get a whiff of these types of bad experiences, and can draw a line to these types of operators as people operating without a RE license, which is illegal in AZ.
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