Posted by ChicagoismynewBlog! on May 24, 2010
Take a look at Crain’s Chicago Business’ article about our poor Staybridge Suites hotel that has sat as an empty 16 story shell for nearly two years. Wow, time flies.
Investors battle lender on stalled Miglin hotel
127 W. Huron. Photo from CoStar Group Inc.
(Crain’s) — Chicago developer Duke Miglin and an Irish group he recruited to invest in his stalled River North hotel project are striking back at the lender trying to foreclose on the property, now just a 16-story concrete shell draped in canvas.
Mr. Miglin and his prospective partner allege that the lender, CapitalSource Finance LLC, reneged on an agreement to recapitalize and restart the planned Staybridge Suites hotel at 127 W. Huron St., which has been idle for nearly two years.
A venture financed by the Irish investors filed a federal lawsuit earlier this month to force CapitalSource to return a $1-million deposit from the venture that would have gone toward the aborted recapitalization.
It is the latest salvo in the dispute over the failed 216-room hotel development, which was launched at the peak of the hotel boom but is now just another symbol of the bust. CapitalSource, which provided a $43.1-million construction loan for the project, filed a foreclosure suit in October 2008 alleging that a venture led by Mr. Miglin failed to put up an additional $5.9 million to finance the hotel as required under the loan agreement….
Click HERE to look at the full Crain’s Chicago Business article.
Posted in Buildings, Construction, News Articles, River North | Tagged: Crain's Chicago Business, Development, Duke Miglin, Foreclosure, Hotel, River North, Staybridge Suites | Leave a Comment »
Posted by ChicagoismynewBlog! on December 4, 2009
Treasury sets guidance to simplify “short sales”
By Al Yoon Al Yoon
– Mon Nov 30, 6:58 pm ET
NEW YORK (Reuters) – The U.S. Treasury on Monday set long-awaited guidance on a plan for mortgage companies to speed “short sales” of homes and other loan modification alternatives to stem a rising tide of foreclosures.
The Home Affordable Foreclosure Alternatives Program provides financial incentives and simplifies the procedures for completing short sales, a growing practice in which a lender agrees to accept the sale price of a home to pay off a mortgage even if the price falls short of the amount owed, according to an announcement on the Treasury’s website.
Guidelines address barriers that have often sidelined short sales by setting limits on the time it takes a bank to approve an offer, freeing borrowers from debt and capping claims of subordinate lenders.
The incentives, first announced in May, expand on the government’s Home Affordable Modification Program, known as HAMP, that has seen limited success in lowering payments for distressed homeowners. The Treasury earlier on Monday stepped up pressure on mortgage companies to make permanent the 650,000 trial modifications they have started.
“While HAMP program guidelines are intended to reach a broad range of at-risk borrowers, it is expected that servicers will encounter situations where they are unable to approve” or offer a modification, the Treasury said in its announcement.
Financial incentives for completing short sales or similar deed-in-lieu transactions — in which the deed is simply transferred to the lender — include a $1,000 payment to servicers, and a maximum of $1,000 to go to investors who sign off on payments to subordinate lien holders, the Treasury said. Borrowers would receive $1,500 in relocation expenses.
Short sales are favored by real estate agents and community groups over foreclosure because they can preserve the borrower’s credit rating and leave the property in better condition than when a homeowner is evicted. While primary lenders typically realize steep losses, their recovery is typically far better than under foreclosure.
But short sales have been frustrating for borrowers and real estate agents, often hung up by negotiations with multiple lien holders and mortgage insurance companies. Real estate agents have complained that sales fall through as lenders bicker over the sales price, what they should receive from the proceeds, and whether the borrower will be held accountable for the debt in the future….
Check out the full Yahoo News article by clicking HERE!
This is awesome news so lets just hope it actually follows through and actually makes short sales easier to navigate through. Right now, I have someone interested in a short sale and I’m just about to start the stages. But, with the right people behind you, short sales can actually be short! On that note, if you or a friend are ready to jump into the buying, selling, or renting process, shoot me an email at firstname.lastname@example.org or visit my @properties agent profile by clicking HERE!
Posted in @properties, News Articles, Real Estate | Tagged: @properties, Chicago, Foreclosure, Foreclosures, Home sales, Homes, Illinois, Mortgage, Mortgage Companies, New Construction, Real Estate, Short Sale, Short Sales, Treasury, United States | Leave a Comment »