Towards the end of October I met Home Cash Direct CEO Jason Walsh and Office Manager Jason Langheim at a real estate expo in New York and was invited to meet with them on 11/4/09. On 11/4/09 I went to Mr. Walsh's personal home for which it was stated Mr. Walsh was not available but I signed a written agreement to purchase 1709 N. Gratz Street, Philadelphia, PA and provided Home Cash Direct Acquisition Agent John Simoncini a $5,000 certified check in earnest money deposit. Mr. Simoncini earlier that same day had driven me around and showed me numerous properties that Home Cash Direct had supposedly rehabbed were in the process of rehabbing and were managing for other investors. Mr. Simoncini assured me that if the purchase of the 1709 N. Gratz Street property did not go through for whatever reason that Home Cash Direct would apply my $5K deposit to one of Home Cash Direct's other investment properties with no problem.
I had verbally agreed to the $370,000 purchase price for this property verbally via telephone with CEO Jason Walsh and I finalized the purchase contract with Office Manager Jason Langheim, with the contract stating it was contingent on me getting acceptable financing with an interest rate of 7% or less along with Home Cash Direct providing me copies of the current leases neither of which occurred through 1/15/10. At the beginning of December Mr. Simoncini called me and informed me that Home Cash Direct had another really good investment opportunity for a rehab. Project, I called Mr. Walsh and made an arrangement to meet with Mr. Walsh on 12/11/09 and to see the proposed rehab.investment property. On 12/11/09 I traveled to Philadelphia to meet with Mr. Walsh and again was informed that Mr. Walsh was not available but Mr. Langheim took me to a property located at 2003 Hemberger Street, Philadelphia, PA and discussed the proposed investment deal.
I gave Mr. Langheim an additional $5K in earnest money and signed a memorandum of understanding for the transaction of the 2003 Hemberger Street property which required $15K of additional payments required to finish the rehabilitation for which I would receive all profits for the property upon the properties resell. Home Cash Direct directed me to apply for the required 1709 N. Gratz property mortgage with Milestone Bank who after me inquiring and pressing for the approval for several weeks while they supposedly were reviewing my personal and financial information informed me that Milestone was only lending to persons located in the Philadelphia area. Home Cash Direct (Jason Langheim) then instructed me to apply for a mortgage loan with Green Tree Mortgage company whose representative, Derek Schaffer, initially stated that it was required for me to put down 20% of the purchase price which I responded was the absolute maximum that I could afford to do.
Over the next several weeks Mr. Schaffer then informed me that I was approved for the mortgage which was not true as after continuing pressing Mr. Schaffer for a statement of approval in writing Mr. Schaffer sent me only a pre-qualification letter and also informed me that I had to put up a 25% down payment for which I did not have the additional money. I informed Mr. Walsh that I just wanted to cancel the 1709 N. Gratz purchase as it was 3 weeks past the contractual closing date of Dec. 21 and my loan approval status in reality was still very much an unknown. I asked Mr. Walsh to just transfer my $5K deposit for the 1709 N. Gratz property to the remaining $15K in remaining rehab. Costs for the 2003 Hemberger St. Property. Mr. Walsh refused to do so stating he had to check the contract for the 1709 N. Gratz in direct contrast to Mr. Simoncini's assurance that I could easily transfer my deposit if the property purchase did not work out for whatever reason.
I subsequently was very patient for 2 weeks and tried to work with Home Cash Direct. I made an arrangement to meet with Mr. Walsh on January 28 to review other investment opportunities that Home Cash Direct had but Mr. Walsh agreed to meet with me but was not available nor had any representative available to meet with me. Upon me sending several e-mails and calling several times on January 31st Mr. Walsh finally after writing several vague e-mails (he was being as deceptive and coy as possible) agreed to send me back my $10K in total deposits but refused to state the date he would do so. Mr. Walsh has just most recently stated that he has no intention of paying me the owed $10K in deposits at all so I am now forced to sue Home Cash Direct, Home Cash Builders, Mr. Walsh, Mr. Langheim and Mr. Simoncini as my only means of receiving my owed $10K in deposits.
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