Two South Loop Condo Projects on the Brink of Foreclosure

The battered South Loop residential real estate market is taking another hit as Amalgamated Bank sues to foreclose on a condo project.

Amalgamated Bank, a union-owned lender, is moving to foreclose on the $50-million construction loan it issued for the 180-unit Terazzio project at 1935 S. Wabash Avenue. The New York-based bank filed a foreclosure suit in May, following up with a separate complaint in June against ventures of Sedgwick Properties Development Corp. and Sedgwick’s Marty Paris. The lawsuit says Paris personally guaranteed the loan.

The bank is seeking $45.7 million, which includes $1.54 million in late charges and accrued interest on the loan. The suit says the Sedgwick venture first defaulted on the loan in July 2010 when it stopped making monthly debt payments. The Terrazio is being converted into apartments.

A separate foreclosure lawsuit has been filed by an Amalgamated venture against Sedgwick’s Marquee condo tower, completed in 2008 at 1454 S. Michigan Ave. The suit says the project’s $60 million construction loan, initiated in 2005, wasn’t fully paid off when it came due on December 2010. The bank’s suit seeks $4.17 million and also alleges that Paris personally guaranteed the debt.

No one, not even large corporations, are immune from issues such as foreclosure. All it takes is one hiccup in the income to start down the slope to a bank filing a lawsuit. Legal remedies are available to individuals and corporations alike to salvage what is left of their finances. The key is to utilize them before it’s too late.

Benjamin Brand Services – Chicago foreclosure attorney

Developer of New City YMCA Property Facing Lawsuits on Other Building Sites

A Chicago developer with plans to develop the ex-YMCA property on Clybourn Ave. and Halsted St. is fighting foreclosure lawsuits on two nearby properties.

PNC Bank filed three foreclosure suits against ventures of Structured Development LLC, seeking $15.8 million in total. The properties in question are a 2.5-acre site that is the former home of White Way Sign Company at 1317 N. Clybourn Ave., and a 2.3-acre lot at 1401 N. Kingsbury that was formerly a Bowman Dairy facility.

PNC also filed to foreclose on another Structured Development property at 211 N. Clinton Street. The building is a former Chicago & Northwestern Railway Power House converted by Structured into offices and restaurants. Structured defaulted on an $8.6 million construction loan it took out in 2007 to finance the project, according to the suit.

National City Bank originally made the loans before it was acquired by PNC in 2008. Structured Development plans to pay off the loans by selling one property and refinancing two others according to a principal at the firm. Structured has secured a loan to settle the debt with PNC in full.

PNC alleges the monthly mortgage payments were missed in summer of 2010. Structured purchased two of the properties in 2007 and 2008, at the peak of the real estate bubble.

The imploding of the real estate market caught both individuals and corporations off-guard. Unfortunately, for many, there is no going back, only forward. There are legal options for those who are in foreclosure.

Benjamn Legal Services – 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.

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

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