Mortgages Ltd. plans legal action against borrowers; downtown Phoenix Hotel Monroe targeted

Nick Oza, Arizona Republic[Source: Andrew Johnson, Arizona Republic] — Bankrupt real-estate lender Mortgages Ltd. plans to begin foreclosing on properties being developed by two of its largest borrowers.  John Clemency, an attorney representing Mortgages Ltd., said in U.S. Bankruptcy Court on Monday that the company plans to take action against Grace Communities and Rightpath Ltd. Development Group LLC.  Mortgages Ltd. claims the borrowers are in default on loan payments.

Grace has five loans from Mortgages Ltd., including ones for the construction of Hotel Monroe in downtown Phoenix and X Wine Lofts near downtown Scottsdale.  Rightpath has three loans from Mortgages Ltd. for the development of Main Street Glendale, a mixed-use sports and entertainment project on 500 acres near University of Phoenix Stadium.  Both companies deny being in default and are suing Mortgages Ltd. in Maricopa County Superior Court.  They allege in separate lawsuits that the lender did not fully fund their loans.  [Note: To read the full article, click here.]

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