I wrote in a previous post about how an Alaskan woman lost her $5,000 deposit by dealing with what appeared to be an unscrupulous person who specialized in scamming people who couldn't qualify to buy a house. Apparently his enterprise was almost nationwide in scope and the search for him has gone international.
Go to Valleymarket.com for info on how this guy managed to steal money from hundreds of people and even drain their bank accounts.
It is a good lesson about dealing with people you only find on the internet. Deal with local loan officers, and local real estate professionals to keep from getting ripped off.