I was purchasing a home through this company, they are supposedly a non-profit org that helps people in financial distress, to sell their home, to relieve them from their debt before their credit is ruinged. I made an offer on a home on Oct 1st 2006 and gave Melvin Hughes a $1000.00 check for the earnest money. He cashed my earnest money check, which I did not find out until the next month when I recieved my bank statement. He then wrote me a refund check for the one that he cashed, and when I went to the bank to cash it, he had stopped payment on it. I never did get it back.
During the process of purchasing this home, he did not complete proper paperwork, although I was not aware of this at the time. He told me everything had been approved by the bank and everything was going smoothly. Our first closing date was to be Oct 27th. I obtained my financing for the purchase price. He then called me on or about Oct 15th and told me that I could get the house for $10,000.00 less and to give him $5000.00 in cash so that he had funding for his non-profit organization. I was reluctant, and thought this was odd, but agreed. So he wrote another new purchase contract. I asked him repeatedly for my earnest money back during the course of our business meetings.
In mid November he assured me that everything was a go and the new closing date would be Nov 21st 2006. (My bank was also in contact with him and they were told the same stories I was regarding the approval on the discounted sale). My bank ordered an appraisal which I paid $450.00 for, because my bank needed it for closing. Once again we were told the closing date had to be extended because of the other bank had not finished their paperwork. (We were unable to speak with the other bank because of privacy issues regarding the current owner.) The new closing date was set for Dec 7th. Once again the closing was delayed Finally my bank officer, was able to contact the bank of the current owner only to find out that not one thing had been done. They did not even know that there was a buyer, I met their bank at the house so they could inspect it.in order to approve the discounted sale.
In the end, their bank denied the sale, because of the suspisciousness of the paperwork trail, all of the different purchase contracts, and the fact that he did not do anything to put the sale through. They said had it not have been for his lack of business etiquite and the way the whole thing looked so suspicious, I would have been able to purchase the home. He cost me nearly 4 months of leg work an appraisal fee of $450.00 an earnest money check in the amount of $1000.00 and alot of wasted time. I am very angry and don't want anyone else to be ripped off by him or his company. The people who were in need of help are now stuck with alot of fees and other costs, not to mention that thier credit is ruined and will not recover from this nearly 4 month ordeal.
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