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Land contract scam?

Posted by Applenutbutter (My Page) on
Thu, Feb 9, 12 at 12:31

Can't quite figure out what the angle might be (maybe $ laundering?), but we recently got an offer that has the feeling of a scam to it. Has anyone else heard of this or a similar scenario?

Out-of-state (driving distance) buyers with no agent of their own approached our agent looking to pick our house up as a second home. Buyer proposed a cash sale for full asking price plus sharing our agent's commission, making close to 3 years of monthly payments and receiving the title at the end. Buyer doesn't want to pay interest but will let us stay in the house for a good chunk of the time they are making payments. The buyer waived most of the inspections on our antique house. The buyer explains this arrangement by claiming to be heir to a large fortune. Of course, we would have identity, background and credit checks done, but I'm wondering if this situation rings a bell with anyone?


Follow-Up Postings:

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RE: Land contract scam?

The buyer will probably give you a cashiers check over the amount due and ask you to pay back the difference. Once the buyer has your money you will never hear from him again and you are out of several thousand $$$. (and your privacy, SS#, bank acct.#, etc)


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RE: Land contract scam?

If they are heirs to a large fortune, then why do they need to make payments? That's what would raise a red flag to me. And if they're making payments, it's not a cash sale.

A contract for deed does give you more protection than it gives them (you own the house until they have made all the payments). Are they proposing the paperwork or are you? How thoroughly they review (or don't review) the documents would be a good way to feel them out. If they sign anything easily without legal review, I'd smell a rat.


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RE: Land contract scam?

Sounds like an elaborate "Nigerian 419" type scam or something.


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RE: Land contract scam?

Applenutbutter, any updates?


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RE: Land contract scam?

I'm wondering if perhaps their only income is the 'share of commissions' which would be paid at closing by separate funds before all the paperwork went down the toilet?...


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RE: Land contract scam?

Unbelievable!! I've had almost the exact same scenario happen to me... out of state, driving distance, no agent, full asking price, 2 years of payments, no inspection, title at the end. I don't trust this guy AT ALL... but, unfortunately, my mother (78 year old widow) does, and wants to go through with it. He won't give us a credit report. PLEASE tell me what happened in your situation...


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RE: Land contract scam?

Oh, please do tell me what ended up happening here...


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RE: Land contract scam?

bergness: what happened with yours?


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RE: Land contract scam?

Def. sounds like one of those Nigerian scams.

They also do it with highly sought after items, cars...........BMWs. They go on Ebay, Craigslist, newspapers and contact people directly. They even run scams with PUPPIES!

I with Berniek on this one. RUN!


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RE: Land contract scam?

It could be a Contract For Deed, which is a legit deal. Usually people who have a good self employed business or some other form of money coming in, but can not show a lender any income on tax returns. I have a client right now that may end up doing a Contract For Deed deal. He has plenty of monthly cash flow but does not claim any on tax returns as income, hence he can not get financing.


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