• Illinois Home Foreclosures Down In July

    There were 46 percent fewer foreclosure filings in July than there were last year, a report from Irvine, Calif.-based RealtyTrac showed. Released on August 11, 2011, the report showed Illinois with 10,627 foreclosure actions-including default notices, auctions and bank repossessions-last month, according to the Associated Press.

    The Daily Herald also reported suburban counties with large drops included DuPage County with 64 percent, Kane County with 57 percent, Will County with 50 percent, McHenry with 44 percent and Lake County with 40 percent. However, Illinois ranked No. 9 nationwide in foreclosures. RealtyTrac also reported 212,764 nationwide, or a 35 percent drop.

    However, the report also showed that for the second straight month the bank-owned, or repossession, of homes increased about 20 percent in Illinois.

    Experts told the Daily Herald that the foreclosure process has slowed due to the robo-signing controversy started in October 2010 when some major lenders were accused of trying to process foreclosures quickly by signing documents without thoroughly reading them. The matter is still under investigation by the state attorneys general.

    Benjamin Brand Services – Chicago bankruptcy lawyers

  • Trustee for Lehman Bankruptcy Hopes to Pay Customers in Full

    The bankruptcy trustee winding down Lehman Brothers Holdings Inc’s brokerage wants to repay customers what they’re owed in full. However, he is expecting a shortfall in paying back $47.5 billion owed to creditors.

    The bulk of brokerage Lehman Brothers Inc’s $20.6 billion in assets will probably go to customers, James Kobak, a lawyer for trustee James Giddens said.

    Customers have asserted a $12 billion in allowed claims and another $43 billion in unresolved claims, Kobak said at the trustee’s “State of the Estate” address in U.S. Bankruptcy Court in Manhattan. Giddens has said he believes the bulk of the unresolved amount will be found invalid.

    A majority of the unresolved claims come from Lehman affiliates, including $17 billion from broker-dealer Lehman Brothers International Europe and $8 billion from the parent Lehman company.

    Giddens told the court he hoped to make at least partial payouts to net equity customers by March or April, adding that key customer claims disputes will be hashed out in court soon. Judge James Peck feels a dispute with the European portion of Lehman could hamper the estate’s ability to pay creditors.

    The dispute is over Lehman Brothers International Europe’s $8.3 billion “house” claim over money the brokerage holds. The issue concerns whether money held on behalf of foreign affiliates can be considered customer money. If the claim is allowed, it could eat up a large portion of the brokerage’s resources for repaying customers.

    Benjamin Brand Services – Chicago bankruptcy lawyer