Lender that took over Mutual Bank files foreclosure suits By Andrew Schroedter Crain's Chicago Business 10-27-2009
Lender that took over Mutual Bank files foreclosure suits
By Andrew Schroedter
Crain's Chicago Business
October 27, 2009
Three months after taking over Mutual Bank from the FDIC, a Texas bank is cleaning up the troubled loan portfolio of the shuttered Harvey financial institution, filing foreclosure lawsuits to recover $7.54 million from a low-profile suburban hotel operator.
Garland, Texas-based United Central Bank acquired Mutual on July 31 from the Federal Deposit Insurance Corp., which had seized Mutual, with assets of $1.6 billion. As part of the sale, the FDIC agreed to share any losses with United Central on $1.3 billion of Mutual’s assets. The FDIC has estimated that closing Mutual will cost the government $696 million.
United Central has filed eight commercial foreclosure lawsuits since Aug. 25 in Cook County, including four cases filed this month against hotel operator Samuel Alexander and a related venture, according to the Cook County Circuit Court Clerk’s Web site.
Mutual Bank filed just 19 foreclosure cases in Cook County between Jan. 1 and its takeover by the FDIC, according to the clerk’s online records.
Ronald Damashek, a partner at Chicago-based law firm Stahl Cowen Crowley Addis LLC, which represents United Central in the Alexander cases, declines to comment.
In one lawsuit, United Central alleges that a venture controlled by Mr. Alexander owes $4.48 million on a loan for America’s Best Value Inn at 6450 W. Touhy Ave. in north suburban Niles. Sam & R Enterprise Inc. paid $5.5 million in May 2005 for the 141-room hotel, financing the acquisition with a $4.4-million loan from Harvey-based Mutual Bank, according to property records.
A message left for Mr. Samuel Alexander, president of Sam & R, was not returned.
The bank is also seeking to collect $1.94 million on the Midway Inn, 5335 S. Pulaski Road; more than $682,000 on a mixed-use building that’s home to Siam Noodle & Rice Restaurant, at 1001-07 W. Leland Ave., and $438,372 for the Lakeview Food Pantry at 733 W. Sheridan Road.
Lender that took over Mutual Bank files foreclosure suits
By Andrew Schroedter
Crain's Chicago Business
October 27, 2009
Three months after taking over Mutual Bank from the FDIC, a Texas bank is cleaning up the troubled loan portfolio of the shuttered Harvey financial institution, filing foreclosure lawsuits to recover $7.54 million from a low-profile suburban hotel operator.
Garland, Texas-based United Central Bank acquired Mutual on July 31 from the Federal Deposit Insurance Corp., which had seized Mutual, with assets of $1.6 billion. As part of the sale, the FDIC agreed to share any losses with United Central on $1.3 billion of Mutual’s assets. The FDIC has estimated that closing Mutual will cost the government $696 million.
United Central has filed eight commercial foreclosure lawsuits since Aug. 25 in Cook County, including four cases filed this month against hotel operator Samuel Alexander and a related venture, according to the Cook County Circuit Court Clerk’s Web site.
Mutual Bank filed just 19 foreclosure cases in Cook County between Jan. 1 and its takeover by the FDIC, according to the clerk’s online records.
Ronald Damashek, a partner at Chicago-based law firm Stahl Cowen Crowley Addis LLC, which represents United Central in the Alexander cases, declines to comment.
In one lawsuit, United Central alleges that a venture controlled by Mr. Alexander owes $4.48 million on a loan for America’s Best Value Inn at 6450 W. Touhy Ave. in north suburban Niles. Sam & R Enterprise Inc. paid $5.5 million in May 2005 for the 141-room hotel, financing the acquisition with a $4.4-million loan from Harvey-based Mutual Bank, according to property records.
A message left for Mr. Samuel Alexander, president of Sam & R, was not returned.
The bank is also seeking to collect $1.94 million on the Midway Inn, 5335 S. Pulaski Road; more than $682,000 on a mixed-use building that’s home to Siam Noodle & Rice Restaurant, at 1001-07 W. Leland Ave., and $438,372 for the Lakeview Food Pantry at 733 W. Sheridan Road.
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