I would like to file an official complaint and claim against Lorenzo Hills and his company, East Coast Commercial Finance, LLC located at 801 E Morehead Street Suite 307, Charlotte, NC 28202. Lorenzo has lied, defrauded, falsely delayed and ripped off $3500 from us on a commercial multi-family purchase loan.



On May 6th, 2008 we applied for a commercial purchase mortgage to purchase a 7 unit multi-family property in San Antonio, Texas to several lenders including East Coast Commercial Finance, LLC (ECCF). On May 16, 2008, we decided to go with the term sheet offer from ECCF which was to be a $240, 800 loan at 80% LTV on a 7.125% interest rate fixed for 5 years with a 30 year amortization with a 3 year declining prepayment penalty with a $3500 deposit to offer due diligence, appraisal and other 3rd party reports.



After supplying all the required documents during May and the beginning June, Lorenzo said the appraisal was ordered on June 10, 2008 and would take 3 to 5 weeks. After 5 weeks of no word from an appraiser, Lorenzo saying that the appraisal was ordered but would not provide the appraiser's name to even the seller's agent, we sent ECCF and Lorenzo an ultimatum on July 15, 2008 to provide the appraiser's name or refund the $3500. On July 18th, 2008, Lorenzo called and said the appraisal was not ordered and that he could probably provide a short term loan at 10% that we could refinance right away and could probably get done even without an appraisal.



On July 22, 2008, I received the offer of a “short term” financing solution from ECCF. On July 23, 2008, we responded with demand letter to respond to the offer. The offer is totally unacceptable for the following reasons:

1) The interest rate offered is 10.5% which is 3.375% higher than our originally agreed to 7.125% interest rate on the May 16th, 2008 agreed to in the term sheet/letter of Interest.

2) The amortization schedule is 25 years instead of the 30 years originally agreed to on the May 16th, 2008 term sheet/letter of Interest.

3) The prepayment penalty is 5% for 5 years which does not make this a “short term” solution that we can quickly refinance like you said on the phone.

4) The prepayment penalty is 5% for 5 years which is different than the 3 year declining prepayment penalty (3%-2%-1%) originally agreed to on the May 16th, 2008 term sheet/letter of interest.

5) The points to ECCF are 2% instead of 1% originally agreed to on the May 16th, 2008 term sheet/letter of Interest.



Even though ECCF could not obtain financing as described in the May 16th, 2008 letter, we have recently obtained the following financing offers that meet or are better than ECCF's original terms offered and are exceedingly better than the terms ECCF have come up with on July 22nd, 2008.



Offer 1: $240, 800 at 6.5%, 5 year term, 30 year amortization, no prepayment penalty

Offer 2: $240, 800 at 8.65%, 5 year term, 30 year amortization, 3 year declining prepayment penalty

Offer 3: $225, 750 at 6.25%, 3 year term, 30 year amortization, 3 year declining prepayment penalty

Offer 4: $225, 750 at 6.50%, 5 year term, 30 year amortization, 5 year declining prepayment penalty



As far as ECCF's due diligence, they have done none. The Mortgage Pointe has provided you with all documents, credit and photos needed. ECCF has not visited the property and did not order and pay for an appraisal on June 10th, 2008 as they said the past.



For the reasons outlined above, we demanded full repayment of the deposit of $3, 500.00 provided to ECCF in May 2008 in the form of a wire or cashiers check by July 31st, 2008.



Lorenzo Hills and ECCF have failed to respond so we are seeking to remedy our claim via all criminal and civil legal means.



Timothy Walsh