Syndicated Mortgage

[pc8787]

Hello all,
I invested in a syndicated mortgage project. They sold the property and told the investors there are not enough money for the capital to them after the payoff for the 1st and 2nd mortgagees who have made the decision to sell the land. Is this a normal way to go?

Thanks for any advice,
perry

 

[Thomas Beyer]

Is this Fortress ?

Third mortgages are exceedingly rare. First and/or seconds are "normal". Normal is whatever the MIC decides and usually tells you upfront. Some do only first mortgages on commercial projects up to 60% LTV. Some do first and/or second on both residential, land development or commercial projects, some up to 90% but most to 75% only.

Some in-depth research on the MIC universe on our Facebook page and website.

 

[pc8787]

It's not Fortress.
It was my first time about it and was introduced by one of my financial adviser friends. And it was my first investment in this area. At first, it was a high-interest loan, after few months I was supposed to get my money back, they renewed the contract without my consent and I started doubting about it. I checked on the FSCO website and found some complaints about this company. I don't know if this is proper to disclose the name here. They delayed the interest payments every month. Eventually, they put the loan to the syndicated mortgage and I agreed because they couldn't pay me back the loan and told me it would be more secure to have my name on the property if I put the loan to the syndicated mortgage. And I did it. Now the 1st and 2nd mortgages sold the land and we estimated the money is not enough to pay us back after paying the 1st and the 2nd mortgages. I am so upset to hear about they sold the land at the price we know we are not going to have our capital returned. We were told the property is in a prime location and the value was able to cover all the investment before we decided to put money into it.

 

[Thomas Beyer]

Stick with facts then you can disclose things or names. Just don't allege stuff or slander people or firms. Sticking with facts is OK such as I invested in X and I lost it all.

You may have recourse against the firm and/or financial "advisor" who likely received a commission.

There is a proposed class action lawsuit at the moment against fortress including the OSC as they do not properly regulate syndicated mortgages as a security as the lawsuit alleges it should. More on this here http://www.macleans.ca/economy/angr...profile-seller-of-risky-syndicated-mortgages/ or here http://www.mortgagebrokernews.ca/news/the-other-side-of-the-syndicated-mortgage-story-206809.aspx (you can read and/or add comments if you want)

 

[pc8787]

Thank you Thomas. will read it through!

 

[Pat11733]

Tier1? Memory care?