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Property owner: Rivermist foreclosure action a 'miscommunication'

Published: Thursday, Feb. 13, 2014 1:39 p.m. CDT • Updated: Thursday, Feb. 13, 2014 11:50 p.m. CDT
(Monica Maschak - )
American Midwest Bank filed a foreclosure lawsuit against several lots in the Bridges of Rivermist subdivision.

DeKALB – A Sycamore bank is seeking to foreclose on a several lots in the Bridges of Rivermist subdivision, saying the property owners are $13,000 behind in mortgage payments.

American Midwest Bank in January filed two foreclosure lawsuits against Rivermist Unit 5 LLC, John Pappas, Peter Iatrides, the Bridges of Rivermist Subdivision Homeowners Association and tenants of the property located near First Street and Bethany Road in DeKalb.

Pappas said he is one of five investors in Rivermist Unit 5 LLC.

“It is a miscommunication between the investors,” Pappas said. "The investors are not on the same page, but they are getting together to work it out.”

He declined to comment further.

The foreclosure suits filed by attorney Katharine Peterson names Rivermist Unit 5 LLC, John Pappas and Peter Iatrides personally liable for the default.

In its lawsuit, the bank says the defendants have not made monthly payments on two mortgages totaling more than $700,000.

According to court documents, the defendants have not paid the monthly principal and interest installments on one of the mortgages since Oct. 24, leaving them behind $4,161 as of Jan. 2. The total amount owed on the mortgage as of Jan. 2 was $141,629 plus interest at a rate of $18.07 per day.

On a second mortgage with a principal of $560,275,, the defendants have not made monthly payments since Dec. 10, the lawsuit states, leaving them $8,246 behind on payments as of Jan. 2.

Pappas purchased 105 lots in the subdivision in August 2008 and transferred the land assets to Rivermist Unit 5 LLC, according to a letter from the Bridges of Rivermist Homeowners Association to the DeKalb City Council in 2013.

Peterson and a homeowners association representative did not respond immediately for comment.

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