All Forum Posts by: Denise Tutor

I signed a contract with them and put down $2500.  After not getting approved with their hard money lender, 212 loans, who requires a very high credit score for hard money lending (680), they told me that I had the option of finding another lender. I did that in about ten minutes and was ready to go again. They then said they could not sell me the house if I did not use their lender and they had to show it to other investors. They still have my check and the contract is still valid. They had wanted me to come in to sign a termination agreement but I don't agree to terminate. Now they have another buyer under contract. I'm not sure that this is legal.  It was a very strange experience for me. 

I just had an odd and I'm not sure even legal experience with NetWorth. First of all, let me say that their comps and ARV were off. But the house I was looking at, I could work around that and still make money. I am new to this but do know enough from my experience as a real estate paralegal and also from flipping my parents house after they passed away. I'm not an expert by any means I am also not a HGTV wannabe. Anyway, Houston is a tough market to compete for properties in so after several months, I went with NetWorth to get started. After looking at several homes, I found one I wanted. I knew the neighborhood and the repairs were ones that I could do 85% of on my own. Hence the ARV and rehab calculations being too high not bothering me much. I did not have enough cash to buy it outright so I went through them, well their 212 loan company, to hard money finance it. I signed a contract and put down $2500. with NetWorth. I was then denied by 212 because they require a credit score of 680 which I fall just below of. On a side note, credit scores don't even need that number for conventional loans...what's up with that? I was not informed of this prior. So, I was told that I could find a different hard money lender and I did. Now, they are saying that they have to show to the house to other investors and that I can come to the showing and say I want it again but if someone else says they want it then we have to draw cards and whoever draws the highest card can buy it. I'm having one of my former associates look over the contract I signed to see if this even legal. They still have my $2500. and the contract.