• Foreclosure Fraud in California Shut Down

    The California Department of Justice and the State Bar of California recently sued a group of California lawyers for taking millions of dollars from homeowners by promising them relief on home loans and foreclosures. The lawyers attempted to defraud homeowners by marketing “mass joinder” lawsuits to homeowners across the country, which made participants pay up to $10,000 in retainer fees for bad legal advice.

    The victims of the fraud believed that the lawsuits were the only way they could receive justice, but they were unable to get answers to even simple questions about pending foreclosures. The law firms involved are based in Calabasas, Costa Mesa, Walnut Creek, Agoura Hills and Encino, California, but they sent over two million pieces of mail soliciting homeowners across the country. The state plans to seek tens of millions of dollars of fines, penalties and restitution for the swindled homeowners.

    If you plan to seek foreclosure help to rebuild your life, you should go to a firm who will assist you through each step of the process. In addition, you should look to one that has experience, that knows the laws, and that will provide these services without taking advantage of you.

    Benjamin Brand Services– Chicago bankruptcy attorney

  • General Growth Says It Didn’t Default

    A lawyer for General Growth Properties Inc said the No. 2 mall owner in the United States is planning to fight two court rulings ordering the company to pay about $100 million in additional interest relating to loans it made prior to its bankruptcy two years ago, Reuters reported on August 16.

    Court documents showed Chicago-based General Growth was ordered to pay $11 million to the State of New York’s Common Retirement Fund and about $89 million to a group of lenders that constituted a 2006 bank credit line. Chicago-based General Growth said that in both payments it did not have to pay the higher default rate plus legal and agency fees, and that the missed payments did not constitute a default, according to Reuters. The payments relate to higher interest payments triggered after General Growth missed loan payments prior to filing for bankruptcy protection.

    The company became the biggest U.S. real estate bankruptcy case after it filed for protection from its creditors in April 2009. General Growth emerged from bankruptcy in November 2010, funded by investments from Brookfield Asset Management, William Ackman’s Pershing Square Capital LLC and others.

    While the company repaid its creditors in full, Reuters reported General Growth repaid the New York pension fund and the 2006 credit facility lenders based on non-default interest rates.

    General Growth is asking the U.S. Court of Appeals Second Circuit to take its appeal of Judge Allan Gropper’s order that the company to pay the difference between the two rates.

    Benjamin Brand Services – Chicago bankruptcy lawyers