Here is an odd situation.  Weigh in with your thoughts please...

I have a deal pending that is slated to close on May 18th.
Yesterday I got a call from the mortgage broker asking if I had spoken to the client recently. (red flag)
The broker advised me that when the appraiser went to cash the check the client had written him, that bank told him that the account had been closed for some time. (red flag)
The mortgage broker then called the client's employer and was told that the client didn't work there. (red flag)
Being so close to closing, the mortgage broker was obviously shaken and demonstrated such over the telephone. He asked for my help in contacting the client. I agreed  and began the quest.
I called the contact number I have for the client in an attempt to reach him - the phone was disconnected. (red flag)
I called his fiancé in an attempt to reach her to reach him - her phone is disconnected. (red flag)
I called the fax number for the fiancés home-office (only other number I have) and let it ring until a live person answered. I spoke with the fiancé and told her I needed to hear from the client immediately. Fiancé then told me that the wedding was off and that she didn't know where client was but she suspected she would hear from him later that day.  (red flag)
Now fully invested in making contact with the client out of nothing more than curiosity, I found a number listed for the clients home address. I called and his grandmother answered.  She has not seen client in several days and does not have another number to reach him. (click) (red flag)

SO then I called the attorney handling his side of the closing.  She heard from him earlier this afternoon and read me the number from her caller ID box.  I called the number and the client answered. I asked about all the phone disconnections and where he could be reached.  He provided me with another telephone number as I was apparently calling him at work. (write that number down!)

I told the client to call the mortgage broker as he has a bum check that needs to be satisfied. Client also tells me that the check he wrote the inspector would also bounce because the bank ( blah...blah...blah).
I reiterated that closing is just under a week away and this would not be the opportune time to start a bad check campaign.

I called mortgage broker and advised him of contact with client. Mortgage broker asked me how long I had worked with client. I advised him that I had only met the client twice while doing viewings before we wrote a contract.  At our first meeting the client produced a 100% Pre-Acceptance letter from a different mortgage company and presented well and well dressed. I had to advise him that outside of that, I did not know the status of his personal affairs.

So then the mortgage broker came straight out and asked if I knew if client was presenting false documentation or was involved in an id theft scam to buy property.  I wasn't quite sure how to answer outside of offering to fax over everything I had in the file that I could so he could match it with his own paperwork. We discussed the client poor credit rating and how the client had a string of disconnected telephone numbers to his credit.

 Client  - of course - says it is all one big misunderstanding and that the bank is to blame.

Thoughts?