USACM to Hire Foreclosure Attorneys in Seven States to Pursue Delinquent Loans

(Sept. 5) USACM announced on August 31 in U.S. Bankruptcy Court that it is retaining attorneys specializing in commercial foreclosure to pursue delinquent Borrowers in these seven states: Texas, California, Massachusetts, Illinois, Michigan, Florida, and Arizona. The Company stated it will aggressively utilize every legal avenue available to it to pursue collection of 100 percent of the principal, accrued interest and fees owed it, including taking action against any and all Guarantors.

USACM did not disclose the specific loans targeted by its foreclosure attorneys, but it did disclose that all of the loans involve direct lenders, some of the loans involve the USA Capital First Trust Deed Fund, and some of the loans include equity interests or guarantees held by USA Investment Partners.

USACM said it is taking the action after having exhausted its options through negotiation and after having served all Borrowers with Notices of Default. USACM further stated it is taking these actions consistent with the terms of its Loan Servicing Agreement with its Lenders and the Loan Agreement with the Borrowers.

The Loan Servicing Agreement between USACM and the Lenders in each loan clearly states that the costs for pursuing foreclosure of a loan, including, but not limited to, attorneys fees, trustees fees and foreclosure costs, will be paid by the Lenders to USACM out of the proceeds of the foreclosure before any payments are made to the Lenders.

• Motion to Retain Ordinary Course Professionals (PDF)

NOTE TO BORROWERS: Borrowers who believe they may be a target of the USACM foreclosure action can avoid the time and expense of litigation by paying off their loans in full by calling Amanda Stevens, Director of Loan Administration, or Mark Olson, Chief Operating Officer, at (702) 734-2400, option 4.