03-25-2009 04:51 PM - edited 03-25-2009 05:10 PM
Capital City Mortgage Corporation is a shady corporation, having previously been sued and lost to the FTC for predatory practices, and having listed this property for over a year with 3 different buyers attempting to purchase the home only to be declined by their title companies. I recently entered into contract to purchase 907 K Street NE from Capital City Mortgage Corporation, only to find out that the title to the house was fraught with fraud, liens, and cross-collateralization issues. Capital City Mortgage knew of these title defects but did not disclose these issues to us when we entered contract to purchase theproperty.
We paid for a home inspection, as did 3 other potential buyers of the property, which Capital City Mortgage used to make repairs and upgrades to the home to bring the property up to code, and we paid for an appraisal, which CapitolCity Mortgage requested from us after they learned that we would not purchase the property due to the fraud and due to the fact that Capital City Mortgage Corporation had skipped important steps during the foreclosure and their original purchase of 907 K Street. Capital City Mortgage Co held hostage our good faith deposit while insisting that we provide them with the results of the appraisal. When we refused to provide them with theappraisal the sellers, Capital City Mortgage, refused to release our good faith deposit, even though they [Capitol City] were in breach of contract. Only when we threatened legal action did Capital City release our funds, and they immediately re-listed the property at a SIGNIFICANTLY higher price than the property could possibly appraise for. Cap City did NOT re-foreclose on the property and has not provided disclosures related to the fraud associated with the property title. Until this property is re-foreclosed upon, which Cap City botched the first time around by cutting corners, the title not clear and not marketable. Three different title under-writers told us they will not insure this title/home for years to come. Buyer beware!
I sincerely hope Redfin moderators have the integrity to remove this listing from their site and to warn potential buyers of 907 K Street of the grave problems associated with this property!
03-25-2009 06:26 PM
Unfortunately, we can't remove the listing from our site because our agreement with the multiple listing service, MRMLS, in the area prohibits us from hiding individual homes. The best we can do is advise you to contact MRMLS with your concerns. You may also try the Better Business Bureau or the DC Board of Real Estate.
Best of luck on your next home,
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03-31-2009 09:15 PM