Bridge Loan Disaster $17.9M

Caroline Weiss faces losing her waterfront Blue Lagoon development in Miami to foreclosure after lender TIG Romspen sued for unpaid debts. 

On August 10, Judge Thomas ReBull ruled against Weiss, who defaulted on a $13.1 million mortgage, which, with added fees, grew to $17.9 million.

This development, approved by the city in 2019 for expansion, was at the heart of a family legal battle, with Weiss' eldest daughter claiming ownership.

Meanwhile, Weiss had ambitious plans for a mixed-use complex, including 882 apartments and two hotels, but failed to repay the loan and property taxes, leading to the foreclosure action.

Our Opinion:

This was risky. There were other warning signs too: Weiss hadn't paid property taxes for three years and wanted to build a huge project with 882 apartments and 433 hotel rooms. When Weiss couldn't pay back the loan, the amount owed grew from $13.1 million to $17.9 million because of extra fees and interest. The court said TIG Romspen could take the property, but it might be hard for them to get all their money back. This case teaches lenders to look closely at all the risks before lending money, especially when dealing with family businesses and big building projects.

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