ML-Implode News - Community Banks force New Canaan Realtor to Liquidate: Six Prime Homes Ordered for Auction

A top New Canaan real estate agent who tried to use a reorganization bankruptcy to save about a dozen of her investment properties in Fairfield County, CT is close to losing her battle with her bankers. After three years of fighting upstream in Bridgeport, Conn. federal bankruptcy court Judge Shiff ruled last month against Ruth Jones and ordered a forced liquidation auction on six of the properties including her luxury primary residence in New Canaan. The case shows how even local community banks are not willing to modify loans with long time customers who have an established history of payment credit prior to the financial crisis and earned these banks millions in fees.
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But Jones isn't taking this laying down. In the last month she had filed a grievance report with the State regarding the bank appointed Trustee, Richard Coan. It's unclear how Coan, whose experience is in Chapter 7 bankruptcy with Hartford-based law firm Coan, Lewedon, Gulliver & Miltenberger, was chosen as a reorganization trustee. Legal filings show Judge Shiff appointed Coan in February 2011 after the banks wouldn't come to the table to accept any of the modification plans submitted by Jones.

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Community Banks force New Canaan Realtor to Liquidate: Six Prime Homes Ordered for Auction