Hi,
I have a colleague who has someone who can buy a bond for a commerical mortgage that acts as an insurance policy, so to speak. The bond is purchased from a bonding company in NY, who will then underwrite the project just as a lender would. Once the bond is approved, the bond is then backed by a major bank in Germany 100% who acts as the guarantor. This "bond" can then be taken to any bank to be funded, with the funding bank having the assurance that they will be repaid. It works like an FHA loan...which is the best example my colleague could give. Anyone else ever heard of this? thanks.

No. never heard of it. And no, you can not take it to any bank to get a loan. I work for one and we would not do this loan.

The banker is always going to want to see the viability of the project first. Collateral should be secondary.

If the German bank is willing to do this, then ask for a letter of credit and have it confirmed by a local bank that you can rely upon.

This sounds very fishy.