Commercial realty loan complaint against CITIBANK.
SITUATION. In XXXX 2007 I invested in XXXX, a Tenant in Common property in XXXX XXXX Iowa. Like most of the other CP investors I rolled over equity in an IRS XXXXexchange from a small property.
XXXX XXXX ( XXXX ) was sold to a group of XXXX investors for XXXX, and set up as a tenant-in-common investment ( TIC ). In the case of XXXX a master lease promised guaranteed income like an annuity. Most XXXX owners, myself included, are over XXXX. For many the investment constituted much of their life savings which are now lost leaving some TIC owners dependent on their children or at the precipice of bankruptcy, XXXX even XXXX.
After years of mismanagement, large capital calls amidst XXXX disbursements, and frustrating and costly civil litigation, XXXX went into foreclosure. Owners representing a XXXX % ownership have pending civil actions against the TIC sponsor, who is out of business and the asset manager who is in bankruptcy. These civil actions are unlikely to remedy the massive systematic fraud and injustice that has cost us much of our retirement savings while blighting our latter years with financial and personal anguish.
CITIBANK. However, behind the sponsor and AM there is a giant deep pocket, Citibank, that our lawyers have deemed too big to sue but without whose collusion in writing, then selling, a loan which did not meet reasonable underwriting standards the owners would not have lost their savings. ( More details in attachments. ) Apparently realizing that the CP loan of XXXX was tainted with fraud and bound for foreclosure, Citibank sold it for XXXX to a vulture bank whose practices appear to be to buy distressed loans , drive out the equity investors, and flip the property. Citibank ‘s action has parallels to subprime loan abuse, only it the victims were elderly small investors, not home owners.The XXXX XXXX investors have lost more than XXXX total. There are hundreds of other defective TIC real estate loans that have damaged thousands of XXXX investors across the country. Nothing is being done against the banks who wrote loans that were used to defraud investors and perpetrate XXXX abuse.
ASK. We ask CPFB to investigate the Citibank loan to XXXX XXXX XXXX and the sale of the loan and seek damages for the XXXX TIC investors, my self included.