Troubled Block 37 on Market After Foreclosure Fight

The new Block 37 mall on State Street is officially going up for sale after a long and hard-fought foreclosure battle.

The bank group that now owns the shopping center has hired Eastdil Secured LLC to market the mall. The 280,000 square-foot mall opened in November 2009, a few weeks after the lender group sued to foreclose on the project. Bank of America leads the lender group.

Bank of America gained control after bidding $100 million at a sheriff’s foreclosure sale in March. The bid amount is less than half of the loan’s $206 million balance. No other bids were made for the mall.

The $100 million offer is known as a credit bit. Lenders take back properties in an attempt to satisfy the amount they are owed. These bids can sometimes indicate what lenders think a property is valued at.

Daniel Hyman, president of Millennium Properties R/E Inc., feels the mall should draw strong interest from investors. “There’s obviously going to be interest,” Mr Hyman says. “There are more people downtown with dogs than briefcases. There are people there that would shop.”

A spokeswoman for Bank of America confirms the hiring of Eastdil. The brokerage had been hired by the lender group to market the mortgage late in the foreclosure proceedings.

Benjamin Law Firm – Chicago foreclosure attorney

Florida Couple Forecloses on Bank of America

A couple from Collier County, Fla foreclosed on Bank of America after the bank would not pay for legal fees they owed the couple.

The problems started when Warren and Maureen Nyerges purchased a home owned by Bank of America. The couple paid cash in full for the property, negating the need for a mortgage. At some unknown point, the paperwork for the home was sent to the bank’s attorney to start foreclosure.

The Nyerges took the case to court, managing to get the foreclosure dropped after 18 months of proceedings. A Collier County judge ordered Bank of America to pay the couple’s $2,534 legal fees. Five months passed and the bank still had not paid. Bank of America’s inaction caused the couple’s attorney to take action by moving to seize the bank’s assets.

The Nyerges, attorney Todd Allen, moving trucks and armed deputies all converged on a Bank of America branch with the intent of taking the bank’s property to satisfy the debt. The attorney stated “I instructed the deputy to go in and take desks, computers, copiers, filing cabinets, including cash in the drawers.” The bank’s manager was visibly shaken by the incident.

A little more than an hour had passed when the bank finally cut a check to satisfy the debt. A representative for Bank of America issued a statement apologizing for the delay in issuing funds. They claim the original request went to an outside attorney who is no longer in business.

If you are seeking foreclosure help, or are interested in learning about short sale options, contact a Chicago foreclosure attorney. They can assess your situation and plan a course of action.

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