Complaint Review: Blackburne & Sons Realty - Sacramento CA
Blackburne & Sons Realty B&S does not do their due diligence with loans they present to investors causing major losses, many foreclosures and they still profit on your loan gone bad. Sacramento CA
*UPDATE Employee: Blackburne & Sons' Response to Report - Please Read
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Blackburne and Sons present loans with over evaluated appraisals which end up foreclosing & sitting for years while continually charging you a service & management fee on top of many other assesments. Not only do you lose your investment, you continually pay for a vacated over evaluated property to a company who didn't provide due diligence.
One of my current deals gone bad goes as follows:
B&S accepted an appraisal of $4,800,000 on a golf course located in St. Charles, Illinois without doing their due diligence. They presented an investment bulletin to investors to invest in a loan for $2,700,000. The payment of $27,000 plus brokers fees bringing the total monthly mortgage payment of $30,000. The owner made payments for six months only (1st months payment was late), then stopped making payments causing the property to be foreclosed on. Upon the foreclosure it was discovered the property was worth $3,000,000 less than what the original appraisal stated. B&S did not do their due diligence. Come to find out they never got 2 local broker's opinion of value to support the original appraisal. They also approved a borrower who reported no income for 2013 & 2014 and little income for 2015 then found a total of 62 investors (mostly elderly) to fund a $2,700,000 loan.
When the property was foreclosed on, investors became aware the golf course was in debt, produced no income and the current vendors required cash payments because of overdue accounts. Because of the fact B&S lacked in providing their due diligence, investors are being charged $531,000 in assessment fees. B&S is profiting still as they are charging their investors approximately $100,000 a year in loan serivcing & management fees. Investors who fail to pay their assessments will lose their entire investment & voting rights. It's clear B&S was conned and this could have been avoided if they didn't fail to do their due diligence on this loan. They take NO responsibility for their actions or the losses and continue to charge their managment fees to their investors.
With 33 years of experience in the loan business, how can so mnay mistakes be made on one loan?
After speaking with other B&S investors, we have realized this is not the only loan with these types of mistakes & problems and this appears to be a pattern. There are many foreclosed properties not selling, over evaluated & investors continually being charged assessments.
My advice is, don't waste your time or money in this company unless you want to add financial losses & stress into your life.
This report was posted on Ripoff Report on 09/13/2018 04:53 PM and is a permanent record located here: https://www.ripoffreport.com/reports/blackburne-sons-realty/sacramento-ca-95841/blackburne-sons-realty-bs-does-not-do-their-due-diligence-with-loans-they-present-to-i-1460791. 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. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content
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