Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2026
Trust sues Starwood Mortgage Capital over $46.85M loan with alleged hidden senior lien
Lawsuit filed
Computershare Trust Company, National Association, as trustee for the BMO 2024-5C5 Mortgage Trust, filed a lawsuit on September 4, 2026 in the Supreme Court of New York against Starwood Mortgage Capital LLC. The complaint alleges Starwood sold the trust a $46.85 million commercial mortgage loan secured by two Harris County, Texas properties, The Pointe and Oak Shadows, while falsely representing that it held a legal, valid and enforceable first lien. It alleges the properties were already encumbered by a $27,601,000 senior deed of trust held by Thistle Creek Partners, LP, and that a later foreclosure wiped out the liens securing the trust's loan. After a repurchase demand from special servicer CWCapital Asset Management LLC, the trust seeks a court order forcing Starwood to buy back the loan or provide a substitute, plus damages of no less than the purchase price. Starwood removed the case to federal court on October 9, 2026. None of the allegations have been proven.
Stated objective. Seek a court order forcing Starwood to buy back the loan or provide a qualifying replacement, plus damages in no event less than the Purchase Price, attorneys' fees, costs, and interest.
Source excerpt
the same properties were already encumbered by a $27,601,000 deed of trust held by a third-party lender, Thistle Creek Partners, LP
First, it wants a court order forcing Starwood to buy back the loan or provide a substitute. Second, it seeks damages "in an amount to be proven at trial, but in no event less than the Purchase Price."
None of the allegations in the lawsuit have been proven or tested, and no court has ruled on the merits of the claims.