• Fannie Mae Moves to Foreclose on Apartment Building in Chicago Ridge

    Fannie Mae has filed a $6.1 million foreclosure suit against an 84-unit apartment building located in Chicago Ridge.

    The owners of Ridgeland Court failed to keep up with their end of the bargain. The complaint filed by Fannie Mae lists failure to make a monthly payment in May, didn’t purchase the required insurance for the building, and did not pay outstanding bills on the property within a specified 30-day period.

    Rental growth has risen in suburban buildings such as the 65,400 square foot Ridgeland, according to a recent report by Appraisal Research Counselors. The apartment market in the suburbs is strong due to the weak job market causing young people to rent instead of purchase a home.

    Ridgeland Court Apartments are fully leased according to real estate data provider CoStar Group Inc.

    The owner of the apartment building is a trust managed by SKS Properties Southwest Region Inc., according to the lawsuit.

    SKS is also in default because it transferred ownership interest in the property to another entity, SKS Properties SE LLC. This transfer violated the mortgage agreement according to Fannie Mae’s complaint.

    Fannie Mae seeks to collect the original amount of the 2007 loan. The original amount is $5.4 million, and does not include accrued interest, fees, and other costs.

    Benjamin Brand Services – Chicago foreclosure attorney

  • Crystal Cathedral Interested in New Bidders for Church Property through Bankruptcy Auction

    The famous Crystal Cathedral church filed for bankruptcy in October 2010, listing more than $50 million in debt as the main reason for filing. Greenlaw Partners of Orange County placed an offer for the property in May 2011, but the church is now asking the court to allow partial withdrawal from a plan made with Greenlaw.

    In the May filing, an exit plan was filed with Greenlaw purchasing the Crystal Cathedral property for $46 million, leasing the church and various buildings back to the ministry and constructing apartments on areas of the property.

    Two potential buyers have expressed interest in the land, both with different ideas for use. A plan filed by the church’s unsecured creditors allows Chapman University to purchase the 40-acre campus for $46 million and lease back essential buildings to the church for less money than Greenlaw proposed.

    The other interested entity, the Roman Catholic Diocese or Orange states that it hopes the property remains a place of worship. The diocese does not have a central location of worship for the 1.2 million Catholics living in Orange County.

    Recent filings related to the bankruptcy address objections to the church’s exit plan. Objections have been filed by the U.S. Trustee, a family who paid for a group plot in the church’s cemetery, and attorneys for church founder Robert H. Schuller.

    Benjamin Brand Services – Chicago bankruptcy attorney