• 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.

  • Another one bites the dust: Orland Park Re/Max franchise to liquidate

    Re/Max Team 2000 in Orland Park, one of the first such franchises in Chicago, recently filed for bankruptcy.  Team 2000 was started in the 1970s.  A court appointed trustee will help dissolve the business.

    But a new Re/Max franchise located at the Team 2000’s central office has opened in its stead.

    According to the Chicago Regional Manager of the Team 2000 office, a “vast majority” of the 110 agents are continuing with the new franchise. Others have relocated to separate Re/Max offices or have joined new firms.  Team 2000 employees found out just two days before the filing that the business was shutting down.

    Re/Max Team 2000 in Orland Park had listed assets of more than $720,000 and almost $3.9 million in liabilities.  The business filed Chapter 7 bankruptcy.

    According to one Chicago bankruptcy attorney , businesses usually use Chapter 11 to attempt to reorganize and then emerge from bankruptcy; Chapter 7 on the other hand signifies that a business will liquidate and sell assets to satisfy debts.  Without knowing the specific details of the business’s financial woes, it is hard to speculate why Re/Max 2000 would choose Chapter 7.