I recently received a referral from a relative. I, of course, am always happy to get a referral. So I immediately called the prospective buyer. He had already found a property and he was ready to put an offer in on it. Seemed a little too easy but I have had crazier things happen to me. I decided to go look at the property while as he was still working on his preapproval. It was an older home right next railroad tracks. The property was in decent shape and had space available to put an apartment in.
I called the buyer back and spoke with him about the property. He was very excited about it. I started to realize after talking with him for a few minutes, that something was up with him. Low and behold, he told me that he was currently living in the Veterans home. Which was fine. But then suddenly, he slipped out “I’m bipolar, but they have it under control.” RED FLAG #1 I decided to stay calm and just assume they he was taking the proper medication to keep control of it. Still, I stayed overly cautious.
Over the next week or so, I kept calling him to see where he was at with his preapproval. He finally said towards the end, “they won’t call me back, I don’t understand why they don’t want to work with someone with a lot of money and marginal credit.”…..RED FLAG #2.
I ended up referring him to the loan officer in my office. In, the meantime, he had called me about a commercial property for sale not far from his house. He said he planned to open his own business and wanted to be able to walk to work. He had me check into the property. I did, and while I was waiting for the agent on the property to call me back, I received a phone call from the loan officer. “He has major credit issues and I have suggested that he file bankruptcy.” RED FLAG #3
Still he kept calling me asking me about the commercial property and wanted me to also check to see if the property had a living space. He also mentioned to me about that many other businesses he wanted to start. I did, out of courtesy call and check on the commercial property again. Obviously there was not a living space and I couldn’t imagine that he would even qualify for the lease.
In the end, I had to tell him that I couldn’t work with him any longer with out a preapproval. I decided that there was really know way to know how sane he was and if he was even legally capable to sign legal documents. I felt that there were a lot of legal issues and I wasn’t ready to get caught up in it.