Judge Appoints Receiver To Take Control Over Mobile Home Park After Stiffed Lender Levels Rent Skimming Charges Against Landlord In Foreclosure

In Bloomington, Illinois, The Pantagraph reports:

• A court has appointed a Michigan company to oversee Southgate Estates while a foreclosure case is pending against the south Bloomington mobile home park.



• The foreclosure, filed last month in McLean County court, alleges that the property’s owner, Southgate Estates LLC, has failed to make payments on a $6.9 million loan since June 2010.



• The foreclosure alleges Southgate “misappropriated rents, security deposits and other income from the property” after it defaulted. Judge Paul G. Lawrence on June 10 granted the plaintiff, Wells Fargo Bank, its request that a receiver be appointed to oversee the property, [...] which has about 364 pads for mobile homes. Newbury Management Services LLC, based in Farmington Hills, Mich., was given control while the case is pending.



• “The property is in jeopardy and plaintiff will suffer severe and irreparable injury unless immediate steps are taken to secure the property,” Wells Fargo’s attorney wrote in the foreclosure filing.



• Lawrence’s ruling says residents who own or lease mobile homes on Southgate’s property should continue to make regular monthly lot rent payments to Newbury.

For the story, see Judge names receiver for B-N mobile home park.