February 2012 Archives

Grocer A&P to emerge from bankruptcy after plan approval

Some Chicago residents may be familiar with the Great Atlantic & Pacific Tea Co., which is the longer name for the grocery chain known more commonly as A&P. The company has a long history and can trace its origins back to the middle of the 19th century. Once a popular grocer, the company has fallen on hard times recently and filed for Chapter 11 bankruptcy in late 2010.

Chicago Home Foreclosures Rise Significantly

It seems the Chicago housing market has yet to hit bottom. The amount of foreclosures filed on homes in the Chicago metro area increased by almost 14 percent between December and January. This may be attributed to the resolution of problems with lender documentation, which previously prevented Chicago foreclosures from moving forward along with foreclosures nationwide.

Foreclosure settlement reached between government and major banks

After several months of negotiations, the federal government and 49 of the 50 state attorneys general (Oklahoma elected to opt out of the settlement) have reached an agreement with the country's five largest loan servicers.  The agreement will provide as much as $25 billion in relief to distressed borrowers, borrowers in foreclosure and borrowers who have already been foreclosed upon, in the form of direct payments from the loan servicers to the states and the federal government.

Mortgage Assistance for a Property that is "Under Water"

One expression that emerged after the real estate market collapsed in 2008 is "strategic default" or "strategic walkout".  Some property owners, faced with a house that has plummeted in value to a point below the balance of the mortgage, simpy abandon the property even though some of them can afford the monthly payment.  They think that by giving the property back to the bank and walking away, they are off the hook.  There has been a lot of discussion in the media about the morality of such practices, but few address its legal ramifications.

Mortgage lenders pay fines for fraudulent activity

When the sub-prime home mortgage bubble burst, it sent the economy into a tailspin from which we have not yet recovered. Many people in Chicago are still fighting hard to retain their jobs and their houses. Others stand on the verge of foreclosure and bankruptcy.

Mortgage lenders reach settlement in foreclosure lawsuit

Our military has been fighting overseas for many years. But some active military service members have been engaged in a two-front war, fighting for our country abroad while fighting for their houses here. It is no secret that the mortgage crisis hit many Chicago area residents hard. In order to allow service members to focus their energies on their duties to the military, Congress passed a law to shield them and their families from debt and foreclosure.

Chicago part of American's post-bankruptcy business plan

Many residents in the Chicago area have undoubtedly been following the American Airlines bankruptcy closely. O'Hare Airport is one of the American's major hubs, and the airline employs approximately 9,900 people locally. When completed, the company's Chapter 11 reorganization plan will be of great interest to American employees. It will reveal the airline's plan to cut costs, pay off debts to creditors, and emerge as a leaner business.

Is Kodak employee's lawsuit a way of lashing out over bankruptcy?

In an apparent demonstration of anger over Eastman Kodak Co.'s recent bankruptcy filing, an employee has sued the company, claiming executives mishandled Kodak employees'401(k) plans by not ordering the divestment of the company's own plummeting stock.

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