A bankruptcy judge has cleared the way for HomeBanc Corp. to surrender more than $20 million worth of mortgages to Georgia lawyers. The lawyers were forced to fund the loans when HomeBanc's checks started to bounce. HomeBanc is one of the largest lenders in Georgia but problems with the subprime mortgage market led in to collapse into bankruptcy August 9th.
One Atlanta real estate lawyer testified 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. Georgia lawyers who were forced to cover HomeBanc's bounced checks were suing, or threatening to sue, the company in an effort to put a lid on their own liability.
One Atlanta real estate lawyer testified 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. Georgia lawyers who were forced to cover HomeBanc's bounced checks were suing, or threatening to sue, the company in an effort to put a lid on their own liability.
