A legal battle is brewing over Casa Encantada, a Hollywood mansion, as Karen Winnick fights to stop its foreclosure. The widow of Global Crossing founder Gary Winnick claims she was caught in a “loan-to-own scheme” by lender CIM Group, leading to a $155 million debt. Despite a buyer offering to cut the debt by 80%, CIM remains firm on foreclosure. The accusation involves lenders issuing loans designed to default to acquire valuable properties. Luxury homes like Casa Encantada are prime targets due to their high value. Borrowers face risks with high interest rates and aggressive repayment terms, as seen in Karen Winnick’s case.

Read more at Yahoo Finance: The widow of a telecom tycoon is battling to save her $190m home, accusing a lender of setting up a ‘loan-to-own scheme’