June 24, 2009 - An American Invsco tower in Streeterville is the focus of a federal fraud investigation. Indictments have been handed down to 10 people by a federal grand jury in a suspected mortgage fraud case involving $17.2 million in condos at Millennium Centre. Crain’s reports that the group of men indicted are under investigation for using false information to secure loans for two townhomes and seven condos at the 59 story, 363 Chicago condo tower on 33 West Ontario.

The fraud case alleges that two of the indicted men, under the guise of a company, obtained loans from an accomplice who was a loan officer at Countrywide Home Loans. The loans were approved on the basis of the false income, employment and asset information the men gave, according to the article. They then made a profit by getting mortgage rebates from American Invsco and selling the condos to certain buyers.

The report went on to point out that Millennium Centre isn’t the first Chicago real estate project to come under scrutiny for having an unusually large number of foreclosures. Some have speculated in the past that because of developer rebates or loan deals, buyers have been able to purchase units, but not keep up the payments. This allows Invsco to reach a certain sales benchmark in order to satisfy loan requirements. It needs to also be pointed out that Invsco wasn’t named in this federal suit.

Remember that it’s always important for buyers to do a little research on Condo Developers in Chicago before deciding to make a purchase, especially in the current housing market.

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This entry was posted on Wednesday, June 24th, 2009 at 8:00 pm and is filed under Luxury Condos(t) , News(t) . You can leave a response.