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Overheard at Alliance Bancorp of Oakbrook – “So long suckers! Hello chapter 7!”

3 subsidiaries of ARH Mortgage Inc. of Brisbane, California filed Chapter 7 in Wilmington, DE including Alliance Bancorp Inc. of Oakbrook, Ill. According to an SEC prospectus filed in May they company and its subsidiaries originated $2.6 Billion in loans.

In a message posted on the company’s Web site, Alliance Bancorp’s Chief Executive Officer and President Lisa Duehring said the lender had “put up a valiant fight” but that “the latest market was more than we were able to overcome. We have exhausted our resources and do not have the means to move forward.”

In the Q4 of 2006 Alliance Bancorp experienced an increase in early payment defaults resulting in increased demands to repurchase the bad loans. Losses resulted when the loans were repurchased at face value and could not be placed again, or only placed at a steep discount.

According to news reports and Alliance Bancorp’s website the company ceased operations July 13 and filed a Chapter 7 petition with the U.S. Bankruptcy Court in Wilmington, DE.

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  • Bluegil

    Ring around the rosie. GEE, debtors could not pay. Yet, no one is asking why? have we forgotten the S&L mess that fast?

    You expect me too believe as a business they didn’t know the percentage of questionable loans? Oct 01st should prove too be fun.

  • H.Susan Leger

    Alliance Bancorp place a Lien on my peoperty case 07-10932-css Chapter 7,i never had account with these people i deal with Country Wide if this goes any farther i will sue the pants off of them Alliance Bancorp an Wells Fargo Bank the property never was abanbon i am good an mad…

  • H.Susan Leger

    a Chapter 7 was filed on me it better be removed my property is not abandon i will take this to court and collect on this matter at hand,make note i will take steps to solve this case… Thank You Susan