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Real estate transactions central focus of current lawsuit

There's a problem brewing in another state that has both sides of a particular issue on edge and fighting to win the court's favor. High asset real estate transactions like this one are often complex, and when problems arise, it may take considerable time to process through written agreements, state laws and other key variables before the court can make a well-informed decision. Over $400 million is at stake in this situation, which most people in Illinois would consider a substantial amount of money.

Two investors from another state are battling against financial lenders who say they tried to escape paying the full amount due on their mortgage. It's a complicated situation regarding a refinance transaction that occurred a couple of years ago. Those who filed the lawsuit claim the investors withheld important information about the Prudential Plaza building so they wouldn't have to pay the entire debt owed on the building.

Generally speaking, a owner who is refinancing usually has to pay off an entire mortgage, which in this case was over $400 million. Sometimes, however, lending institutions will restructure a loan into two separate pieces, with payment of the lower portion contingent upon hope that struggling rental property will once again bring in enough money to pay off the debt. If this doesn't happen, that part of the debt is often forgiven.

The New York business men who invested in Prudential Plaza are being accused of manipulating the system to avoid paying approximately $87 million of their debt. Not all real estate transactions involve multimillion dollar deals, but even those conducted on much smaller financial scales sometimes run into obstacles when lenders and borrowers disagree about their contracts. An experienced Illinois business and commercial law attorney can assist anyone facing similar problems in this state.

Source:, "Prudential Plaza owners fight lenders over $410 million debt deal", Alby Gallun, June 21, 2017

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