Owner of Florida Ave. Grill is Fighting Mortgage Lender and Attempting to Stop Foreclosure Auction

by San Antonio Attorney

Even after a foreclosure auction was scheduled for the property popularly called as the Florida Ave.  Grill, the restaurant is not closing according to its owner, Imar Hutchins.

Hutchins filed a lawsuit against its ATS One Holding Corp., alleging that the lender employs illegal and unfair practices.  This move allowed the restaurant to remain open despite the foreclosure action against the property.

In the lawsuit, Hutchins asks the D.C.  Superior Court for a temporary restraining order to block the upcoming auction on January 18.

The lawsuit summarizes how the lenders carried out a deceptive scheme to trick Hutchins into extremely overpriced financial deals with very burdensome term.

Hutchins purchased the Florida Ave. Grill in 2005.  The restaurant was opened more than 70 years ago.

Hutchins claims that he paid his monthly mortgage obligations with ATS and also its principals, Peter Aytug and Ari Jay Cohen, since taking the $200,000 and $50,000 financing in May 2011.  But in the summer of 2015, the lawsuit says that the regular payments started being returned as undeliverable, and even online payments were sent back.

Hutchins did not get any response when he attempted to ask where he could deliver the payments, the lawsuit said.  However, the lender used the alleged mortgage nonpayment as the alleged reason for proclaiming a default and forcefully threatening foreclosure and claiming interest for default.

The lawsuit also asserts that the defendants demanded Hutchins to cover the $40,014.17 legal fees or face property foreclosure.  The owner the restaurant told the lenders that he would pay all the amount due, which was $23,550.30, but was turned down.

Starting in January 2016 onward, Hutchins said he began mailing certified checks to ATS every month.  The value of the property in 2016 is $727,280 in 2016, with an estimated 2017 value of $789,830, based on the assessment of D.C.  Office of Tax and Revenue.

Leave a Comment

Previous post:

Next post: