What are the risks associated with investing in Trust Deeds?

When practicing business in a lending environment default situations do occur, particularly amidst the slowed sales and credit limitations impacting the present real estate market. 

As part of its underwriting process, CM Capital Services attempts to determine the feasibility of principal recovery should the Borrower default on a loan. CM Capital Services does not approve loans without clear exit strategies. CM Capital Services is committed to attaining the best possible resolution on behalf of its investors.  Over the past 30 years we have worked very hard in different market conditions to earn a favorable reputation in our industry, and we are confident that Investors will benefit from our experience, resources, and ability to take action on behalf of our Investors.

Borrower default may result in a variety of scenarios including, but not limited to, suspension or discontinuance of monthly interest income for Investors, Borrower Bankruptcy, and Investor property ownership through foreclosure.  Market conditions at the time of property ownership may result in an inability to sell the property for a significant period of time, and foreclosure expenses and carrying costs associated with property ownership are ultimately the responsibility of Investors.  These expenses, as well as the ultimate sale or resolution of the property, may result in a partial or lack of principal return to Investors.