Chicago Rabbi Facing Foreclosure on his Gold Coast Home

Chicago based Rabbi Meir Chai Benhiyoun of Lubavitch Chabad is facing foreclosure on his house at 1236 N. Dearborn St. He is using social media to raise funds for paying off a $4.6 million loan from PrivateBank Trust and Co. If he cannot raise the necessary amount by June 13, the home is going to auction.

Lubavitch Chabad took out a loan for $4.9 million in 2005 for construction of a new synagogue located at 111 W. Chestnut St. Currently, services are held at the Dearborn St. house and regularly hosts up to 90 people during a holiday. In order to finance the loan, the Dearborn St. property was used as collateral. However, the downward change in the economy caused the construction plans to fall through.

The Chestnut St. property is on the market for $3.1 million, $1.8 million less than the amount of the original loan. There is no mention of a short sale. LG Development Group almost purchased the property in 2008 with plans for a 28-story high rise. However, neighborhood complaints and zoning issues caused the project to fall apart. A completed sale of the property would have allowed Lubavitch Chabad to pay off the bank.  Talk is ongoing with another Jewish institution for sale of the property.

For more information on foreclosure help, contact a Chicago area foreclosure attorney.

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