5/2/2016 NOTE: CONFIDENTIALITY AGREEMENT is applicable. If you do not agree to keep this matter confidential to the set of readers in this thread, do not read and do not disseminate beyond this thread. Included herein are the answers to most of the questions asked:
Subject: Love Funding's possible Violation of Trust and possible Unprofessional Handling of my FHA 223f Loan Application, for a 35 Year Fully Amortized loan in the amount of approximately $1,365,000, collateralized by the apartment complex "Hackberry Park Apartments" at 653 Henry Hynds Expressway, Van Alstyne TX
Love Funding accepted my loan application, referred to them by Deanna Kokoszka of US Capital Now, on or about 8/28/2015. The credit report, IMHO the very first report that should have been examined by Love, and examined before ordering any other expensive reports, was disapproved by Love Funding formally on April 14, 2016. So Love spent over 7 months and $23,800 of my deposited funds to determine that Love deemed that while only my credit report was a problem, that due to that report they refused to submit the loan to FHA. A vice president named Stuart Gans said the only loan Love Funding offered was the FHA 223f loan. So I asked for the $23,800 to be refunded plus my expenses to prepare for the closing well after they should have given their decision based on the credit report, and offered to settle for the sum of $30,000.
Was Love Funding acting as my agent and required by law to not squander my funds and time?
In the paragraph numbered 1 of the Love Funding Engagement Letter of August 20,2015 was this statement:
LFC will have the exclusive right to represent Borrower in its application to HUD in connection with this project for the purpose of obtaining Section 223(f) mortgage insurance for the Loan and all meetings and correspondence with HUD will be accomplished solely through LFC.
In the paragraph numbered 6 of the same letter, was this statement:
Any amounts not used will be refunded or credited to the Borrower at the Loan closing.
In the paragraph numbered 11 of the said Engagement Letter were these sub-paragraphs:
(ii) Each party agrees to the use of binding arbitration administered by the American Arbitration
Association to resolve any claim for damages related to or arising from this Letter Agreement, the Firm Commitment or documents executed in connection with closing the Loan (the "Loan Documents").
Borrower and LFC each hereby waives its rights to a trial by jury and agrees not to file any complaint
for damages, engage in any legal action or proceeding in any court, or appeal the outcome of a final
and binding arbitration.
(iii) This Letter Agreement will be enforced, construed under and subject to the laws of the District of
Columbia.
(viii) Borrower approves and authorizes LFC to obtain financial statements and credit reports on
Borrower and any other related parties involved in the Loan, and to provide copies of these reports and statements to HUD in connection with LFC's processing of this Loan. [Snip]
Unless required by law or legislative process, nothing contained in this Letter Agreement or resulting from any financial or other advice provided by LFC may be disclosed to any competitor of LFC, or to any client or potential client of LFC, or to any other party (with the exception of representatives from HUD and authorized third party contractors) in any manner without LFC's prior written approval.
