Friday, August 21, 2015

Cedar Run Phase IV vs Robert Sher

According to court dockets and public records on file with the Cook County Recorder of Deeds, Robert Sher appears to owe a large sum of money in delinquent assessments to his phase association.

On 7/24/2015, Cedar Run Phase IV Condo Association placed a lien on Robert Sher's unit, citing moneys owed by Sher for a sum of $6774.53 plus costs and attorney fees.



On 7/31/2015, Cedar Run Phase IV Condo Association then filed a collection lawsuit against Sher.  The lawsuit is currently seeking an amount of $7579.28. Click HERE to view the court docket.

What does this mean?
Many have suspected that Robert Sher has not paid his phase dues in well over THREE YEARS!!  These numbers are very consistent with that estimate. So, despite being flush with cash while earning nearly $4K per month as "Oversight Committee Chair", Mr. Sher apparently still didn't pay his dues.

If you'll recall back in spring/summer of 2012.........many homeowners, at the urging (or arguably coercion) of Robert Sher, stopped paying dues to their respective phase associations.  Despite Sher's insistence that there would be no repercussions for doing this,  these homeowners eventually had to pay up.  A good many of them went on payment plans to catch up on their phase dues.  Some were taken to court and nearly faced eviction from their units.  A few actually did get evicted for non-payment.  What most of them had in common is that they could not understand why they were being pursued for this debt after simply doing what they were told by Sher.

What we can see from this lien and lawsuit is that Sher appears to have followed his own foolish advice regarding phase dues (i.e. NOT paying them!).  But somehow, unlike everyone else, Sher has been able to game the system, remain in his unit, and avoid being taken to court for a very long time.  Having an attorney in the family probably has something to do with it.  But maybe Mr. Sher's teflon coating has finally eroded away. We will have to let the courts determine that.  It will be quite interesting to see what Anne or Caryn Shaw will muster up as a defense for their beloved brother-in-law.


Interesting fact
Barbara Shaw is also named in the lien and as a defendant in the lawsuit.  We've discovered  an interesting side-story about Barbara and her ownership stake in their condo unit.

Background
Back in May of 2012, Barbara was elected to the Cedar Run HOC Master Board at the annual meeting (oddly enough, the last time we had an annual meeting).  Within the next month, conflict had escalated over who controlled the board.  After pool lifeguards were harassed and run off the property, contractors told by Robert/Barbara that they were "fired", and owners directed to drop their assessment payments off at Sher/Shaw's unit......The dispute made its way to the courts.

During the court proceedings, it was discovered that Barbara Shaw's name was NOT on the deed for the Sher/Shaw unit.  This meant that she was ineligible to serve as a director for the HOC board, since she was not an owner of record.

In response to this, Robert Sher filed papers to put her name on the deed on 6/25/12 (see below), claiming that the eligibility issue was then moot.  Arguably, this issue was NOT moot because Barbara had misrepresented herself at the time of her election.  Despite this, the issue was basically left alone after that.




Fast Forward to June of 2015

Now Sher has REMOVED Barbara's name from the deed.  This is almost exactly three years after he added her name to the deed.

One can only speculate as to why Barbara's name was suddenly removed.  We won't even go there at this point.  What we do know is that Barabara Shaw is no longer an owner of record in Cedar Run.



We will certainly keep a close eye on the case of Cedar Run IV vs Robert Sher, and we'll be sure to post any new info on the blog.

Other than that, we'd love to hear your feedback on this or any of our articles. Email, call, or text at:

(224) 544-9058

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Tuesday, August 4, 2015

Cedar Run Update - Addendum 1

Bank Litigation 

At the time of the fourth receiver's report, the receiver's attorney had been working with Barrington and Itasca banks, as well as Chubb Insurance to come up with a possible settlement in the bank litigation.

Ending this COSTLY lawsuit will be a HUGE STEP FORWARD for Cedar Run, especially for those looking to sell or refinance their units.

In nearly three years since this lawsuit began, the Sher/Shaw group has made NO EFFORT TO SETTLE the case and EVERY EFFORT TO ESCALATE IT.  In fact, Itasca Bank made a settlement offer over two years ago that wasn't very costly to the HOC and basically required the following:
  1. Sher/Shaw/HOC group must return and account for all Phase Association dues it had collected (to date only about 40% has been returned).
  2. Sher/Shaw/HOC group must issue a letter to all Cedar Run Homeowner that retracts all previous statements that the loans were illegal.
Item # 2 was the toughest one for Sher to swallow after several months of encouraging homeowners to NOT pay their phase dues, claiming that no owner should pay these dues until his allegations are disproven.  Instead, Sher & company decided to battle on rather than eat their own words.

Fast-forward to today........There have been a lot more damages and costs associated with this litigation over after two more years.  Those damages are currently being tallied and evaluated.  

How does this relate to selling/refinancing?
For quite some time, homeowners trying to sell their properties have not been able to sell to anyone except cash buyers (and usually for a cut-rate price).  Mortgage lenders require disclosure forms from associations that state, among other things, whether or not the association is involved in litigation.  This bank case has been a huge red flag, and has caused many real estate deals to die in Cedar Run.  The mortgage lenders would back out, and nobody could secure a loan.

As of the last year or so, mortgage lenders have started making similar requirements when refinancing existing mortgages.  We know of at least four cases where an owner was turned down on a refi due to lack of proper disclosures or impending litigation.

Ending the bank lawsuit will have an immediate effect on the phases.   The phases will no longer be parties to a lawsuit.  They will be able to check 'NO' next to the litigation question on the 22.1 disclosure form.  As for the HOC (Master Board), it will be one step closer to checking that 'NO' box if this lawsuit is settled.  The only other lawsuit would be the one that put us into receivership......which will end shortly after the upcoming election.

Opening up Cedar Run properties to mortgagees will bring us an INCREASE in property values, and we will likely start seeing more buyers as owner-occupants rather than off-site rental investors.  It will also be easier for existing owners to stay in their homes if they have the option of refinancing.

We'd love to hear from you!
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