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Another luxury development in trouble? Franklin loans questioned

Ruminations from the Distant Hills reports: In the November 4, 2009 issue of the Franklin Press, Quintin Ellison and Barbara McRae report that Macon Bank has filed lawsuits alleging it was “duped into making questionable loans in excess of $3.5 million” to buyers of lots in the 2200 acre Wildflower development north of Franklin.

The lawsuit charges that Beverly-Hanks Mortgage Services of Asheville defied the bank’s instructions by setting up interest cash-back deals for borrowers. Macon Bank is suing Beverly-Hanks for breach of contract, fraud, constructive fraud/breach of fiduciary duties, negligent misrepresentation, unfair and deceptive trade practices and participation in…

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