Neumann Homes has lost control of six developments as a result of bankruptcy proceedings. The company has been forced to hand over the developments to Residential Funding Co., which is owed more than $92 million.
The developments include three in suburban Chicago, one in Kenosha, WI, and two in suburban Denver. Neumann Homes will get a discount of about $13 million in the debt it owes to Residential Funding Co as a result of the deal announced in a motion filed by the company in bankruptcy court in Chicago.
The homebuilder is the largest victim so far of the recent drop in the real estate market in Chicago. The company still must negotiate with the rest of its creditors. However, the deal with Residential Funding Co. is an important first step for Neumann to come out of bankruptcy.
The company turned over ownership of The Glen at Lakemoor Farms and NeuFairfield. These developments are located in Lakemoor and Juliet. Buyers who were caught in the middle will not be affected by the bankruptcy. Unfinished homes will be completed.
If you’re on the market for Chicago Homes For Sale, browse through the best listings today and find incredible prices in many Chicago neighborhoods.
Technorati Tags: Neumann Homes, Chicago Real Estate, Chicago Homes For Sale, Chicago Foreclosures
