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Complaint Details
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Initial Complaint
01/17/2024
- Complaint Type:
- Customer Service Issues
- Status:
- Answered
This company needs to be shut down for fraudulent activities period. I will be filing a complaint with the ************* immediately. I need contacted asap ********** to file this complaint.Business response
01/18/2024
The client hired LENDBASE December 5th of **************************************************************************************** **********. The client paid a non-refundable fee of $6,000 and entered into a legally binding agreement which clearly stated that LENDBASE would act in the capacity of a broker and could offer no guarantee of financing. LENDBASE gathered a data package and followed up with the client for additional questions that were project specific. On December 18th LENDBASE was provided a new application for a property in **** County. On December 20th of 2023 LENDBASE had the information they needed to go discuss the **** County loan requested with lenders. Lenders at that time didnt come back with offers for financing so the client instructed LENDBASE to consider the property in ***** ****. LENDBASE updated the analysis and went to market for lender offers.
The original application from the borrower was for the ***** **** construction project. The borrower acknowledged on the private money application that they were expecting fees ranging from 4-6% and a rate from 9-13% which is a market range rate and fee for private money construction financing.
LENDBASE did come back with offers for financing a ground up construction home in ***** ** at 70% loan to cost with rates ranging between ****% and ****%. The fee ranged from 4-4.5% per the offer comparison provided to the client. The client accepted these terms and signed an updated addendum to the agreement with LENDBASE on January 12th, 2024.
After further diligence from the lender on the ***** ** property, the client was unable to offer the documentation to support the stated home builders recent experience with proof of title. The lender imposed additional liquidity requirements in order to proceed with the request. The client was unable to prove the liquidity was there to support the request. We believe this is what led to the clients complaint with LENDBASE. LENDBASE has already had multiple calls with the client in hopes to resolve concerns without success. LENDBASE has operated in good faith at all times on behalf of the client in accordance with our agreement. There is no refund due.
It should also be noted that the purchase agreement for the land in ***** **** was not in the clients name. It should also be noted that the addendum the purchase agreement had a settlement deadline of December 4th 2023. The client didnt have the property in their control and had been under contract since October 24th 2023. Further, the purchase agreement was already expired before LENDBASE was hired to assist them with the transaction.
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Customer Complaints Summary
4 total complaints in the last 3 years.
1 complaints closed in the last 12 months.