DAMAGES How are they determined? Who can claim them?
Int. Only 3 yr balloon $375k
10.99% Int. only 3 yr balloon $100k
REFI brokered by Target & Meg
9.9%
2nd loan from Gotmortgage
1st loan from Gotmortgage
LOAN SECURED BY KANSAS STREET PROPERTY HOW DOES THE 7.99% LOAN CONSTITUTE A “DAMAGE” TO THE BORROWER?
7.99% Amortized 30 yr No balloon $475K
THE BORROWER WHO RECEIVES CASH CAN ALWAYS STOP INTEREST FROM ACCRUING
Lender has $ 0 interest on $
Give $ back to lender
$ to borrower
Interest on $ to borrower
THE BORROWER WHO RECEIVED CASH SECURED BY KANSAS PROPERTY CAN STOP INTEREST FROM ACCRUING AT ANY TIME
Lender has $159k
0 interest on $
Give $159k back to lender
$159k to borrower secured by Kansas property
7.99% Interest on $159K to borrower
10.99% Int. only 3 yr balloon $100k
REFI brokered by Target & Meg
Prior loan from Gotmortgage
LOAN SECURED BY ELLIOTT STREET PROPERTY HOW DOES THE 7.99% LOAN CONSTITUTE A “DAMAGE” TO THE BORROWER?
7.99% Fully amortized 30 yrs $100K
THE BORROWER WHO RECEIVES CASH CAN ALWAYS STOP INTEREST FROM ACCRUING
Lender has $ 0 interest on $
Give $ back to lender
$ to borrower
Interest on $ to borrower
THE BORROWER WHO RECEIVED CASH SECURED BY ELLIOTT PROPERTY CAN STOP INTEREST FROM ACCRUING
Lender has $495k
0 interest on $
Give $495k back to lender
$495k to borrower secured by Elliott property
7.99% Interest on $495K to borrower
Loan to LLC secured by the Tennyson property WHY should Target pay 2.99% interest on the loan balance for 30 years? BORROWER requests 7.99% loan secured by Tennyson property (tells Target existing loan is at 10%)
Lender approves 7.99% loan with no cash out
Target CANCELS the loan when it discovers existing loan is at 5%
Target notifies Borrower loan is canceled
BORROWER demands $52K cash out to repay personal loan, preserve 1031 tax exchange, maintain corporate shield
LENDER approves cash out refi at 7.99% on condition borrower hand write understanding of loan terms, Target relays message
Borrowers’ managers hand write note stating they understand rate will increase to 7.99% for approx. $44K cash out, then sign all loan docs
LENDER approves the loan
BORROWER receives $52k CASH OUT per BORROWER’s demand