• Illinois Attorney General Expands Probe of Foreclosure “Robosigners”

    The Illinois Attorney General’s office is expanding its probe of alleged “robosigning” of mortgage foreclosure documents. On May 25, 2011, the office announced subpoenas to two Florida-based mortgage servicing support providers that had not previously been under investigation.

    Subpoenas were issued against Lender Processing Services Inc. and Nationwide Title Clearing Inc. Both firms handle document preparation and management for lenders who are foreclosing on mortgages. Some of the documents requested by the subpoena are every affidavit used in an Illinois foreclosure or bankruptcy case since January 1, 2007. Also requested are the names of all employees who signed affidavits since then. The Attorney General is seeking lists of all current and former employees and information on the companies’ overall loan servicing processes including default servicing and loss mitigation.

    Both companies have until June 16 to respond to the subpoena.

    The probe is investigating foreclosures only. Short sales are not involved in the “robosigning” scandal.

    Illinois is one of many states that have been investigating questionable procedures used to foreclose on consumer’s homes by mortgage loan servicers. The Attorney General’s office had demanded information from 26 mortgage loan servicers in the state, but Madigan’s office stated that it was “turning our attention to third-party vendors that support the servicers in order to drill down to a greater degree in the servicing process.”

    If you are seeking foreclosure help, contact a Chicago foreclosure lawyer. You can learn about the options that are available for your situation through a foreclosure attorney.

  • Lincolnwood’s Purple Hotel is Facing Foreclosure

    The owner of the infamous Purple Hotel in Lincolnwood is facing foreclosure, adding to already existing legal problems.  The lender, First Midwest Bank, has filed a $4.2 million foreclosure suit.

    Donald Bae, the owner of the hotel, has lost a legal dispute with the village of Lincolnwood. The village won a court order to demolish the building at 4500 W. Touhy Ave if Bae does not bring it into code compliance by August 1.

    Bae has been courting buyers for the hotel for years, but no one has expressed interest. There is no mention of a short sale . In the meantime, there has been no obvious attempt to remedy the violations. The village has created a TIF district on the site to encourage redevelopment of the property and surrounding parcels. ForeFront Properties, who is owned by Bae, sought $25.8 million from the TIF for his own redevelopment plans.

    Two adjoining properties owned by Bae’s corporate entity are not involved in the foreclosure. A buyer of the hotel is likely to purchase the adjacent properties to create one parcel for development.

    The hotel opened as a Hyatt in 1960, reaching the height of popularity in the 1970s. Performers Roberta Flack and Barry Manilow stayed there when coming through town for an engagement. Later the hotel played a part in the corruption trial of Antonin Rezko.

    If you are seeking foreclosure help , contact a Chicago foreclosure lawyer. There are ways to save your home with assistance from a foreclosure attorney.

     

    Lincolnwood’s Purple Hotel is Facing Foreclosure