Blank contract was a red flag

When they answered a “home for sale by owner” ad in the Daily Journal, The couple, who we’ll call Joe and Sara Wilson, thought they were dealing with a legitimate seller. The man, from St. Louis, said he wanted to sell a home and six acres in Park Hills for $89,900. He wanted $1,600 down and would finance payments.

The couple checked with a mortgage company and began the preliminary steps for an FHA mortgage. During phone conversations with the man and his wife, the transaction seemed to be going smoothly. They made arrangements to sign papers for the down payment, and the man traveled to the couple’s home and spoke first with Sara Wilson.

That’s when things turned strange.

“He wanted me to sign a paper that was blank where there was supposed to be the total price of the house, the down payment and the monthly payments,” Wilson said. “I told him I wasn’t going to sign a blank piece of paper.”

The man had told her that he bought the house two years ago, and that no one had been living in it. But the appraisal he provided for the modular home was from 2003.

“I thought you bought this house two years ago?” she asked. “Where is the appraisal from then? The value of homes has dropped since 2003.”

The man said he needed the $1,600 before he would discuss details of the purchase. Then he told them that the down payment would actually be an additional $6,000.

And by the way, the price for the house is $99,900, not $89,900, he added. And the six acres? Well, it was really just three acres.

The man blamed the “miscommunication” on his wife. Then he complained that his wife had given the Wilsons the wrong information because she did not obey her husband.

When Wilson said she was not comfortable with the way things were going, the man chastised her.

“You need to trust, then verify,” he told Wilson.

She replied, “I can’t trust you because you switched your story several times. I can’t verify because there is nothing to verify.”

Joe Wilson said he did not feel comfortable with the entire transaction and questioned whether it was legitimate.

The man grew agitated and began quoting the Bible about trust and again warned Sara Wilson that she needed to trust him.

“I said, ‘OK, we’re done,’” she told the man.

Next, he tried an emotional approach.

“Sara, Sara. I know you want this house,” he wheedled.

But the couple was not swayed. They told the man to leave. When they called the mortgage lender to cancel their application and told staff what had happened. The lender told the Wilsons that the man had been wrong to demand the $6,000 down payment, because it was almost twice what FHA allowed for the type of loan the couple was contemplating.

Whether or not the man’s intent was legitimate, his tactics were suspicious. In the end, the Wilsons wasted some time, but were wise enough to avoid losing any money on this deal.

Although “For Sale By Owner” house sales usually are legitimate, it is wise to verify information and do not assume the seller knows everything he or she needs to do for the sale to be legal. Never sign a blank agreement such as the one the Wilsons were handed. Read any contract thoroughly and be sure you agree with everything in it before you sign any the document.

The Daily Journal has made a commitment to keep readers abreast of scams that hit our area. If someone tries to make you the victim of a scam, call us at 431-2010 and tell us what happened. We will include your story in our scam alert series to prepare others who may find themselves in the same situation. The Daily Journal will run Scam Alert stories in the paper every Monday.