Real Estate & Property Law
FDIC Sues Law Firm, Says Security Deed Errors in $2.8M Loan Closing Bar Foreclosure
Posted Aug 3, 2011 12:36 PM CST
By Martha Neil
A Georgia law firm and one of its partners has been sued for malpractice by the Federal Deposit Insurance Corp. over a bad $2.8 million loan.
Because a security deed prepared by Jampol, Schleicher, Jacobs & Papadakis for a 2005 loan closing to an investment company was defective, the FDIC has been unable to foreclose on collateral for the loan, it alleges in a lawsuit filed in federal court in Atlanta, the Fulton County Daily Report reports.
The suit contends that the deed incorrectly lists the corporate owner of property used as security for the loan and omitted one of the lots to be used as security from a legal description.
Lawyers for both sides did not respond substantively to the legal publication's requests for comment.