Business ProfileforEquityMax Inc.

The hard money lender was fraudulent in charging pre-loan processing fee of 500$ and backed out of the original loan amount and lowered the loan amount by ****** due to the processor's mistake in neglecting looking at the contract price and assuming it is the same price of preapproval. The seller can not keep extending closing date and the deal fell through after every parties signed agreement and ready to close, the last day before close **** call me to say they cannot lend due to concern about prior bankruptcy in the county. I requested to pay back the processing fee of 500$ and 295 $ BPO fee they charged me and withheld in paying the agent who did the work.The two incidents of last day lowering of loan amounts for no valid reason had caused the closing extension and again delay, I will have to file a complaint with BBB for EquityMax's wrongful business conduct and request refund of all lost fees and damages if it is not resolved. They refused for refund at all. I started to wonder if their business turned into a fraud by charging upfront fees and back from deals.To all borrower, this company is a fraud, they charges upfront fee in processing and would find excuses/lies to not go to closing and as a result my deposit-500$ in contract is also due from them. This is 2nd loan I tried with them, they charged 1000$ processing fees and 2 times 295$ BPO fees.Please be mindful and not choose this company!

We quoted the borrower a preliminary loan to value and terms in response to the borrowers verbal application. Copy of our email is available and on file. It was CLEARLY contingent on, and subject to, our property valuation and evaluation of loan risk. And, this was fully pre-disclosed. That valuation is a function of a physical visit & analysis, local market conditions, and borrower credit, cash risk, and experience. Prior to even quoting the borrower terms we had also supplied a Proof of Funds letter (copy also available). All quotes to the borrower, and advance fees collected, were based on the borrowers representation that she was paying $149,000 for the property. The borrowers recollection of advance fees is inaccurate. We only charged one $295 BPO fee and one $500 processing fee. We delivered a final,adjusted loan quote once we received our Realtors evaluation of the property and market conditions in the municipality. The borrower agreed to accept the revised loan terms. However, what we didnt know was, in the interim, the borrower re-negotiated her contract for purchase/sale, materially lowering not only her purchase price, but her cash exposure as well. As I said before, the borrowers cash exposure, her out-of-pocket risk in the deal, was a material consideration in our underwriting. In spite of the borrowers misrepresentation,and in order to assist the borrower in keeping her deal intact, we re-quoted the *** at a modified amount, limiting her additional cash outlay to half of what it should have been revised to. She agreed that this was workable. We were, and still are, ready, willing, and able to make the loan to her at the final agreed-upon terms. I have no idea what the borrower is referring to as bankruptcy in the county??? The entire reason we, and nearly all other lenders,charge upfront processing fees is to cover us, our attorneys, and the closing agent for lost time and expended hard costs in the event of non-closing due to borrower misrepresentation, change of heart, or borrower-undisclosed title issues. The borrower clearly should have advised that she did not intend to pay $149,000, and was still negotiating her price. As a matter of fact, we were prodding the title company to close the transaction. However, they advised that the delay was due to the borrower continuing to negotiate her price with the seller. Still, at the end of all this, the seller offered a further time extension to the borrower for a very reasonable $500. A copy of that email is also available and on file with us. The borrower declined the sellers offer.Unfortunately, the borrower had no regard for all the time and effort we expended in trying to close her loan. In bad faith, she made material representations in order to obtain the loan, and continued negotiating her purchase price with no notice to us.

Last sentence corrections: Substitute the word "misrepresentations" for representations.