Need advice, is this illegal?
This is going to be long, hope it makes sense. 9.5 years ago 6 investors got together and purchased a 42 door condo complex. 3m cash was put it and a 3m loan was taken out. Rents have paid down the loan and it will be paid in full next month. Recently we sold a unit and when we went to do the title work we realized that one of the investors (a RE Broker and developer) took out a loan for a different project and put our entire project up as collateral. We now have a second lien on the property which will still be in place next month when we finish paying off the first loan. I have called the bank that put the lien on the property and they refuse to talk to me. The investor who took out the loan refuses to do anything. The operating agreement in place specifically prevents the property from being used as collateral without written consent of all members. What are my options?
