Beware of major losses in syndicated mortgages - real estate lawyer

by Ephraim Vecina on 01 May 2017
Over $1 billion in investors’ funds have been lost in syndicated mortgages across Ontario, a Toronto real estate lawyer stated.

The warning came on the heels of a recent CBC News report detailing the fate of investments made by more than 120 Chinese in the GTA. The foreign nationals are expected to lose upwards of $9 million in contracts with Black Bear Homes.

“This is the smallest one I’ve ever seen for these type of deals,” Franklin said, noting that the deals are fraudulent based on court documents.

The same documents stated that investors in syndicated mortgages with Black Bear Homes were led to provide mortgages at a higher cost than the actual worth of the investment properties. In addition, the financiers were given their interest payments back from their own capital.

Previously, other companies selling syndicated mortgages have been closed down by authority of the Financial Services Commission of Ontario (FSCO). In October 2016, Tier 1 Mortgage Corporation was issued a cease-and-desist compliance order by FSCO.

Post a Comment

Most Trending News

The best place to buy a rental property in Canada: 2021
News

You want the biggest bang for your buck so here are the best places in Canada to buy a rental property, and the best types of properties (including vacation homes!).

Read More
Strategies to Predictably, Reliably Grow Your Real Estate Business
News

This 7-day free masters summit will provide you with all the tips and tricks you need to get started in real estate investing, how to expand your real estate portfolio, and much more.

Read More
June virtual conference promises to turn agents into millionaires
News

“The easiest way to prove to people you can help them is to just start helping them, no strings attached,” said Craig Proctor, the master realtor who revolutionized the team concept.

Read More