Bank National Association, which holds both notes and has already obtained a judgment of foreclosure on the junior mortgage
The sale price was $115,000 paid by assumption of an existing 7% loan, a junior mortgage
bridging the gap between the balance owed on the assumed loan and an 80% loan-to-value ratio, and cash equal to 20% of the purchase price.
7 million in non-trust mezzanine loans, and finally to the trust's $50 million junior mortgage
note, which are all interest only.
The investment program will target mezzanine loans, first mortgage bridge loans, preferred equity, and junior mortgage
6 million of the junior mortgage
loan (the "Junior Loan") encumbering the Property.
Among the many subjects to be covered in the lender phase of the survey that were covered in earlier surveys are mortgage insurance status (FHA, VA, insured conventional, uninsured); outstanding method of payment; current status of payments; and extent and characteristics of junior mortgage
The Operating Partnership also transferred its interest in the junior mortgage
loan (the "Junior Loan") encumbering Continental Towers to Prime Equity.
These loans were originated using less stringent underwriting standards than those applied by some other first and junior mortgage
loan purchase programs including other programs of Residential Funding Corporation and Fannie Mae & Freddie Mac.
Inlet Capital LLC provides a unique business platform to serve nationwide owners of real estate with senior and junior mortgage
debt, corporate mezzanine and subordinated capital, corporate financing and private equity.
RAIT provides structured financing to private and corporate owners of real estate nationwide, including senior and junior mortgage
debt and mezzanine lending, and acquires real estate for its own account.
Specifically, the Company was affected by a widening of the yield differential between LIBOR and both mortgages and junior mortgage
securities that was unusually severe, and for which the Company does not hedge.