In a case where WC 4th and Rio Grande, LP, is claiming that LA Zona Rio, LLC, attempted to refuse taking payments on a loan in order to charge improper default interest, WC 4th and Rio Grande recently filed an amended petition in the District Court of Travis County.
The amended petition alleges that WC 4th and Rio Grande refinanced it’s loan, and that funds for paying off its debt to LA Zona Rio have been in an escrow account since Nov. 25. They are also seeking to quiet any further claim to the property related to the loan, and seeking damages “in an amount as determined by the court.”
The petition alleges that, in September, LA Zona Rio purchased the promissory note related to a mortgage WC 4th and Rio Grande had on a property. Yet, after being notified of the funds held in escrow on Nov. 25, they allegedly attempted to foreclose on the property on Dec. 1.
The funds remain in escrow at this time due to LA Zona Rio refusing to provide a final payoff statement and unconditional lien release, the amended petition alleges. Once those items are addressed, the title company is to release the full payment to LA Zona Rio.
The amended petition alleges that WC 4th and Rio Grande believes the reason LA Zona Rio has not met conditions to receive all funds owed is so that they may “improperly collect Borrower’s rental revenues, may attempt to continue to improperly charge additional interest and legal fees or otherwise attempt to extort Borrower, and may attempt to take the property at a future foreclosure sale in which it would benefit from the considerable excess equity in the Property that has an estimated current value of millions of dollars in excess of the debt based on tax appraisals alone.”