Consumer complaint received 2024-03-08 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — Fees charged
Company: Envision Funding Solutions
State: IL

Complaint narrative:
I ( XXXX XXXX  ) invested > {$200000.00} into a real estate deal in a joint venture with " XXXX XXXX '' ( a company that helps first time home renovators flip their first home ). We received a hard money loan for {$450000.00} from ENVISION FUNDING SOLUTIONS ( EFS ) and purchased a property at XXXX XXXX XXXX XXXX XXXXXXXX XXXX. This loan was then, reportedly, sold ( although we received no such notification ) to ROCXXXX  / ROC CAPITAL ( LOAN FUNDER ). -- - About XXXX months into the project, we started having reimbursements from our loan stolen from us. We learned that this is because it is a predatory loan with a " cross collateralization '' clause. This clause allowed reimbursements from our loan to be used to satisfy XXXX XXXX 's other loans with the company that we had no idea about. This clause also allows any debt from other properties to be added to our account at closing ( or refinance ) making it impossible to pay the money back without paying for other entities debt. This cross-collateralization language was not discussed with us at closing ( located at the bottom of page XXXX of the Loan Agreement ). The real estate agent, real estate attorney, and lender were all chosen by XXXX. -- - We've been paying timely mortgages since acquiring the property in XX/XX/XXXX. In XXXX of XXXX, we paid XXXX XXXX ( through XXXX XXXX XXXX XXXX XXXX ) {$24000.00} for contractor work on our property, however we only received a {$1500.00} reimbursement from the lender. It was over the next XXXX months that we learned of the cross-collateralization language. The reason we only received {$1500.00} back was because {$11000.00} of our reimbursement went to satisfy debt from other properties associated with XXXX XXXX. The additional {$10000.00} is still unaccounted for. -- - This made it impossible to complete work on the house using the loan. XXXX promised to give us the money back. We discussed an immediate refinance but we were told that we were unable to do so. Given that we were stuck in this trap, we decided to post the house for sale. The house never sold as it was only partially rehabbed. -- - We were told by Envision Funding to reach out to XXXX XXXX at ROC  XXXX to help resolve this issue as this company managed our loan. I met with a private attorney about our situation and shared legal concerns regarding mortgage fraud, however, XXXX declined to intervene. Instead, ROC XXXX ( LOAN FUNDER ) has allowed a multitude of continuing charges from other unrelated properties to be added to our bill. -- - Our loan matured XX/XX/XXXX and we were offered a XXXX extension ( for a $ XXXX fee, until XX/XX/XXXX ). Growing nervous, in XXXX ( XXXX ) we wired $ XXXX out of our own personal finances directly to the contractor to pour concrete in the basement. We received a reimbursement of {$10000.00}. Having this success, in XXXX we wired $ XXXX directly to the contractor for all remaining framing and stairs. We received a reimbursement of {$0.00} from XXXX ( the entire {$10000.00} went to satisfy debt from other properties ). -- - After further discussion with XXXX XXXX of XXXX, they finally allowed us to refinance in XXXX XXXX XXXX  drug the process out to the best of their ability. We were offered another XXXX extension ( for a $ XXXX fee, from XXXX until XXXX ). From XXXX to the XXXX ( XXXX months ), XXXX still did not complete our refinance. -- - It was heavily delayed for no solid reason ( at first, there was delay in action with XXXX and other members of XXXX, delays in responses to emails, repetitive requests [ asking for documents that were already sent ], lack of answering phone calls, XXXX telling us to remove XXXX from the loan, XXXX asking us to put XXXX back to the loan ). By XXXX XXXX, XXXX was still working on our refinance and continued to have conversations with underwriting. She would not allow us to contact underwriting ourselves. -- - Given these delays, we were forced to apply for another extension in early XX/XX/XXXX, however, we were told by the loan servicer XXXX XXXX XXXX XXXX ) that no further extensions would be granted and that our loan would default immediately. XXXX ( from XXXX ) sent an email explaining that she needed XXXX more days to refinance us and within XXXX minutes we were suddenly granted a XXXX extension ( for another $ XXXX fee, which expires on XX/XX/XXXX ). After paying this fee, XXXX then explained that she could not refinance our LLC given that we did not have any experience renovating homes. -- - In XXXX, we attempted to refinance on our own elsewhere but were told that the value of the house ( only $ XXXX ) was low for the amount owed based on our payoff statement ( $ XXXX in XXXX ). Outside lenders requested a new payoff letter and to our surprise ROCXXXX / ROC Capital ( Loan Funder ) sent us a payoff statement that added > {$60000.00} of past due fees and mortgages from XXXX other properties that are unrelated to us. This makes it *impossible* to sell the house, refinance from this predatory loan, or exit the loan. We are ( and continue to be ) entrapped. Furthermore, we are threatened with foreclosure and bankruptcy. -- - The loan defaults in XXXX weeks ( on XX/XX/XXXX ). -- - This is mortgage fraud and wire fraud. Envision Funding Solutions has been aware of this predatory language in these loans and despite it, they still closed multiple loans XXXX XXXX. -- - Given these predatory practices, this loan should be voided. -- - In addition, there is no " paper trail '' or transparency related to " who '' houses our loan. XXXX, RocXXXX, and Loan Funder appear to be the same company with the same address despite XXXX of XXXX stating they are completely separate. -- - I have sent multiple emails to all parties involved in this fraud without relief. There are at least XXXX other families in XXXX affected by these predatory loans.

Company public response: Company believes complaint caused principally by actions of third party outside the control or direction of the company
Company response to consumer: Closed with explanation