UNION CITY, NJ-Procida Funding LLC has sold a$3.6 million loan secured by a partially built 28-unit condominiumat 4115-17 Park Avenue here to Fidelity & Guaranty LifeInsurance Co., the first transaction between the twocompanies. The transaction averted a foreclosure on the property asa result of negotiations between direct lender and servicer ProcidaFunding, the original borrower and the new developer.
“There are a lot of vulture debt buyers, and I don’t thinkthat’s a good thing,” Billy Procida, president ofEnglewood Cliffs, NJ-based Procida Funding, tells GlobeSt.com. FGLis a senior participant in the loan, while Procida remains a juniorpartner and a servicer.
These buyers typically then foreclose on the property, wastingmoney and delaying completion for months or years, he notes, evenas the property deteriorates.
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