ComplaintsforLendbase

• Initial Complaint

  10/04/2024

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  We were in the market for a 17 unit commercial property in Detroit Michigan and we where recommended to lend base by a loan officer. We spoke with members from the lendbase team about our goals and ambitions specifically for that project and that we needed them for that project solely. They guaranteed us a loi from a lender within 10 days or a refund. We provide all of the requested documents with our intent to purchase the property, a pro-forma, our rehab budget , contractors. EVERYTHING, they scoured our personal financial details etc and approximately a month later still no loi was presented to us. A Member of their team (let’s just call them MK) openly admitted that they didn’t meet the standards of what was requested. Upon hearing this I stated that per company policy if we haven’t received an loi from a lender within that time period we’re entitled to a refund. She then says that she received an loi but didn’t bother to show me (hid it) for the last 3 weeks. Not only did I lose the deal, I had information withheld from me, and now out $6,000 after complying with all their requests. The only thing I asked where for them to uphold their terms and conditions .

  Business response

  10/04/2024

  Thank you for your feedback.  The file has been reviewed and LENDBASE was clear on the client’s goals and quick deadline.  LENDBASE was hired on August 30, 2024, and reached out to the client the same day to set up a time to meet with them to discuss the  request.  The LENDBASE Business Relationship Manager met with the client on September 2, 2024 (Labor Day Holiday) due to the short deadline. On September 4, 2024, LENDBASE had another discussion with the client where the client was given market feedback as well as guidance based on LENDBASE’s industry experience for the risks involved with the deal.  The client became upset with the market feedback and even hung up on the call while LENDBASE reviewed the risks and was strategizing on how to best move forward.

  The client signed an agreement and paid a non-refundable fee for LENDBASE’s services for 365 days that included a 10 Day Performance Promise.  The platform agreement states, “IV. Financing is not Guaranteed. The Borrower understands and agrees that this Agreement is not a guarantee and that the proposed financing may not be successfully completed. If acceptable financing cannot be obtained, the Broker’s obligation shall be limited to advising the Borrower that the Broker is unable to procure the proposed financing.”   
  

  The Performance Promise states, “If LENDBASE does not obtain an offer from a lender within 10 business days after collecting all requested data and borrower answering any additional questions, LENDBASE will pay the borrower $1,500 within 30 business days.” 

  The loan packaging process was completed on September 12, 2024, after receiving the last document requested.   LENDBASE began lender conversations on September 11, 2024, without the final document, based on the deadline in an effort to expedite the request for the client.  On September 17, 2024, LENDBASE did in fact receive an offer for financing that would accommodate purchasing the property and delivered that to the referral partner that the client had been working with.  LENDBASE was told that the offer, and other feedback, were being actively discussed with the client by the referral partner.  LENDBASE did in fact perform under the Performance Promise and therefore no refund is due.  

  LENDBASE has kept the terms of their promise and agreement with the client. The client was never promised a LOI or offer of any kind as LENDBASE acts as a broker and is not a lender. This was clear in the contractual agreement. In this complaint the client stated that the property was lost, when in fact, the client never provided LENDBASE an executed purchase agreement for the property.

  To the client: We are sorry you feel the way you do and wish to continue helping you reach your investment real estate goals. As a reminder, our agreement is in place for 365 days and we would be happy to pivot to a new property and continue working on your behalf.

• Initial Complaint

  01/17/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  This company needs to be shut down for fraudulent activities period. I will be filing a complaint with the ************* immediately. I need contacted asap ********** to file this complaint.

  Business response

  01/18/2024

  The client hired LENDBASE December 5th of **************************************************************************************** **********. The client paid a non-refundable fee of $6,000 and entered into a legally binding agreement which clearly stated that LENDBASE would act in the capacity of a broker and could offer no guarantee of financing. LENDBASE gathered a data package and followed up with the client for additional questions that were project specific. On December 18th LENDBASE was provided a new application for a property in **** County. On December 20th of 2023 LENDBASE had the information they needed to go discuss the **** County loan requested with lenders. Lenders at that time didnt come back with offers for financing so the client instructed LENDBASE to consider the property in ***** ****. LENDBASE updated the analysis and went to market for lender offers.  
  
  The original application from the borrower was for the ***** **** construction project. The borrower acknowledged on the private money application that they were expecting fees ranging from 4-6% and a rate from 9-13% which is a market range rate and fee for private money construction financing.
  
  LENDBASE did come back with offers for financing a ground up construction home in ***** ** at 70% loan to cost with rates ranging between ****% and ****%. The fee ranged from 4-4.5% per the offer comparison provided to the client. The client accepted these terms and signed an updated addendum to the agreement with LENDBASE on January 12th, 2024.
  
  After further diligence from the lender on the ***** ** property, the client was unable to offer the documentation to support the stated home builders recent experience with proof of title. The lender imposed additional liquidity requirements in order to proceed with the request. The client was unable to prove the liquidity was there to support the request. We believe this is what led to the clients complaint with LENDBASE. LENDBASE has already had multiple calls with the client in hopes to resolve concerns without success. LENDBASE has operated in good faith at all times on behalf of the client in accordance with our agreement. There is no refund due.
  
  It should also be noted that the purchase agreement for the land in ***** **** was not in the clients name. It should also be noted that the addendum the purchase agreement had a settlement deadline of December 4th 2023. The client didnt have the property in their control and had been under contract since October 24th 2023. Further, the purchase agreement was already expired before LENDBASE was hired to assist them with the transaction.

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩