Contract/Escrow Instructions Red Flags

 

 

> Cash is paid to seller outside of escrow.

 

> Down payment is paid into escrow upon closing.

 

> Odd amounts are paid as earnest money.

 

> Name and address on deposit check are different from buyer information.

 

> Borrower not shown as purchaser.

 

> Deposit checks have inconsistent dates.

 

> Deposit check not cashed.

 

> Credits are not typical for the market.

 

> Includes Right of Assignment clause.

 

> Power of Attorney is used.

 

> Increase in sales price to match the appriasal.

 

> No ammendments to contract/instructions.

 

> Purchase is not subject to inspection.

 

> Sale is subject to seller acquiring title.

 

> Buyer is required to use a specific broker/lender.

 

> Seller is realtor, employee or relitive.

 

> Seller or other parites offer secondary financing.

 

> No real estate agent signature.

 

> Lease option.

 

> Price substantially below market value.

 

> Instructions reference another escrow (double).

 

> Multiple contracts exist.

 

> Sellers on sales contract does not match title report.

 

> Original parties on sales contract are not on loan application.

 

> Unusual credits or disbursements are shown on settlement statements.

 

> A difference exists between the sales price on the HUD-1 and sales contract.