Magazine article American Banker

Pipeline

Magazine article American Banker

Pipeline

Article excerpt

Byline: Allison Bisbey Colter

Eviction Showdown

Accredited Home Lenders Holding Co. in San Diego has withdrawn a challenge to a moratorium on foreclosure-related evictions in the Chicago area.

Last week, Tom Dart, the sheriff of Cook County, said he would stop sending his deputies on court-ordered evictions in foreclosure cases because many tenants forced from their homes had paid their rent faithfully and had no idea their landlords were having financial problems.

Mr. Dart said that lenders often had not done basic research to determine whether the people being evicted were the homeowners. In about one-third of the 400 to 500 foreclosure evictions his deputies carry out monthly, the residents were not those whose names were on the eviction papers.

"We will no longer be a party to something that's so unjust," he said.

The announcement made headlines nationwide; it also drew the ire of Accredited. The subprime lender, which is owned by the Dallas private equity firm Lone Star Funds, sued to force Mr. Dart to execute an eviction order.

"Sheriff Dart may have concerns about the orders that he is charged with enforcing, but he simply cannot refuse to carry them out. The orders of the court must be enforced," attorneys for Accredited told the Chicago Sun-Times. "This lawsuit is necessary to ensure that."

But on Friday the company announced it had withdrawn the lawsuit after "further consideration of the facts surrounding this matter." Accredited also said it would also suspend the eviction of "our former borrower, Shirley McFarland," from her foreclosed home in Dolton, Ill. …

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