Las Vegas Hard Money

One of the events that fuel the Las Vegas hard money industry is foreclosure. As we know, it is when the mortgage provider, usually the bank, repossesses the property from owner because of failed payments. When the property goes into foreclosure, it becomes banks owned and bank owned homes are among the best properties bought by investors. Real estate investors, in turn, need hard money loans in Las Vegas or anywhere in the country to buy these houses.

While it is probably normal to hear news of foreclosure, one case stood out. It was the case of a building owned by a company where former Governor Kenny Guinn is an investor. The building is owned by the Coronado Aspen II company. According t the notice of foreclosure filed by the Federal Deposit Insurance Corp. (FDIC), the company breached a $4.72 million mortgage agreement. The building seems to be part of the collateral. What makes this news stand out more is that Coronado Aspen II is actually a provider of hard money loans in Las Vegas!

It seems ironic that a property owned by such company, at a time Las Vegas hard money lenders are thriving, will go into foreclosure. Digging deeper though, this blog found out that the there is a pending dispute over the supposed breach of the loan terms. The agreement was between Aspen and the failed Community Bank of Nevada, the businesses of which are now handled by the FDIC.

When asked over the issue, Aspen’s lawyer had this to day: "While Aspen does not comment on pending litigation, it is very pleased to have received the highest rating from the Nevada Division of Mortgage Lending. It's business as usual at Aspen." It’s an interesting story of Las Vegas hard money controversy worth following up. Really ironic if indeed the company, the nature of which is to help investors make money from foreclosed homes, is losing a property to foreclosure.