ED Magedson – Founder
Centrum Funancial Services Inc12505 Bel Red Road, Suite 200 Bellevue, Washington United States of America
Centrum financial makes hard money loan, forces failure and then forecloses. Below is an ideal example. Also if one looks up the history and law suits of this organization it becomes apparant their MO is to cheat people out of money and property.
Centrum Financial intended to acquire my property from the offset. In fact this has been their intention from the very moment they confirmed the loan. In the following paragraphs I will outline their actions and provide documentation to establish this point of view.
In January of 2008, Centrum Financial gave us a letter informing us of its intention to foreclose. This was delivered to us at a meeting at their offices. Centrum Financial were represented by Derek Edmonds, Joe Edmonds, Bruce Bereth and Elizabeth Baker. During this meeting we were informed that no more funds would be forth coming. We were further informed that Centrum was beginning the foreclosure process, again also evidenced by the attached letter. I would like to point out that the building was not complete and the Certificate of Occupancy had not been issued by the City of Kirkland.
At this meeting, we were informed that the several pre sale Purchase and Sale Agreements that we had accepted would not be allowed as Centrum would refuse to allow partial re-conveyances. In short Centrum wanted their money now, not allow us to sell, and to start foreclosure proceedings. It became very apparent the Centrums actions were not just predatory, but unlawful as it appears that the funds were loaned as a pretext when in reality it was a loan to own philosophy.
Consequently, we filed for relief with the Federal Bankruptcy Court as each one is aware. As part of the accepted plan, Chelsea was to sell the units at $340 per Sq Ft. At the time this plan devised, it reflected the market conditions as existed at the time.
As per the plan, we established Escrow for 5 sales with hard cash as earnest money, in addition to 2 other sales slotted to close in mid 2010. Centrum refused to accept these sales and allow partial reconveyances which would allow us to pay our bills and creditors and move on. The sales presented were at fair market value and an appraisal was provided to establish the values represented by the Purchase and Sale agreements. Indeed, everyone will appreciate that the market conditions have changed since Aug 08 and this is what the market is bearing today.
Centrums actions are forcing the property to become stale and dated, therefore diminishing its market value. In addition it makes it far more difficult to acquire financing for each individual unit as no lender wants to be the first to loan on a home whose building has no previous sales. This further indicates Centrums philosophy of loan to own. In fact, they have conducted themselves in this manner in several other market transactions that have found their way to the court system.
This report was posted on Ripoff Report on 03/12/2010 12:32 PM and is a permanent record located here: http://www.ripoffreport.com/reports/centrum-funancial-services-inc/bellevue-washington-98005/centrum-funancial-services-inc-equity-funding-predatory-lending-with-the-intention-of-acq-580278. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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