We are a Loan Brokerage Firm, for Commercial Loans only, and we feel that a Denver Mortgage lender has ripped off one of our clients. He seems to be a one-man operation, and goes by the name of Satisfaction Mortgage, Inc.
We submitted our loan request for a Bridge loan to facilitate a loan for a Dallas Radio Station, Corp., to Mortgage Company, Inc. As we do on a regular basis. This was done on the Internet at their website. We were contacted by several interested lenders, which state their desire to offer or not to offer a loan for the submitted request. We were contacted by the above listed, Satisfaction Mortgage, Inc., Mr. Joe Siegel with an interest in this bridge loan request.
We were contracted directly with the company seeking a Bridge loan, and needed no contract with Mr. Siegel, and sought no contract with him or his firm. He then contacted our client, and made an offer to look at the deal, asking for an upfront fee of $7500. To cover expenses of the trip to Dallas, and for expenses while he was there. He went to Dallas, spoke with the client, gave him every indication that he was able, and might be willing to make a bridge loan to his firm, but he then needed another $12,000. For legal fees and expenses to make a full investigation of the firm.
This firm had already received a full-certified appraisal on the Corp. And this appraisal came in at $8.5 million dollars.
Very quickly Mr. Siegel comes back with a quote from his attorney, (which he was never willing to make known in a written proposal), the only way to structure the deal was to buy the stations for $1. Million, and offer a buy back agreement at a determined price at a determined date. Of course my client is not interested in selling his stations that are worth probable $10 million, for $1 million, on any kind of buy back agreement.
This would entail a great amount of capital gains, and besides this, it takes at least 4 months for an FCC approval of this type of sale. The client was looking for bridge financing 10 days or less, and for only 3 or 4 months term. This was well known to Mr. Siegel in the beginning, and this supposedly allows him to renege on the deal, and therefore no return of fees. This has all the makings of a setup deal to scam my client out of $19,500. For about $1000. Dollars worth of expenses, and there never appearing to be any effort to make the loan in the first place.
His card states, 24 hours Approval, 48 Hours Funding. Now, 4 weeks later, my client is out $19,500. And has no funding.in my opinion, this deal spells SCAM to me, LOUD AND CLEAR.
0 comments