Bankruptcy Judge Approves Deal Between HomeBanc, Stiffed Closing Attorneys

The Associated Press reports:

• "A bankruptcy judge has cleared the way for HomeBanc Corp. to surrender more than $20 million worth of mortgages to Georgia lawyers who were forced to fund the loans when HomeBanc's checks started to bounce. Judge Kevin J. Carey of the U.S. Bankruptcy Court in Wilmington ruled Monday after hearing testimony from veteran Atlanta real estate lawyer Edwin R. Neel, who said he put up his own home to make sure that rubber checks from the failed lender wouldn't ruin home sales his firm handled for HomeBanc."

Upon receipt of the mortgages from HomeBanc, the attorneys will then have to quickly unload them on other lenders, possibly (and hopefully for them) in time to make sure the homeowners' first checks are received and processed properly. For all the details, see Judge Approves HomeBanc Deal.

For prior post on this story, see HomeBanc Stiffs 26 Closing Attorneys With An Estimated $20 Million In Rubber Checks; Fires 1,100, Files Chapter 11.