American Home Mortgage sets procedures for sale of affiliates' $7.2 million of mortgage loans

By Reshmi Basu

New York, Nov. 9 - American Home Investment Corp. asked for court approval of the procedures for the proposed sale of the remaining $7.2 million of mortgage loans owned by non-debtor affiliates Broadhollow Funding, LLC and Melville Funding, LLC, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Broadhollow and Melville launched a $1.62 billion sale for 5,700 of its mortgage loans and were able to sell a most of them, with the exception of 32 loans worth $7.2 million. The company is now looking to sell those loans.

According to the proposal, American Home will provide a written notice of the proposed sale of any of the non-debtor loans to parties of interest, which include the lawyers for the U.S. Trustee, the DIP lenders and the creditors committee.

If written objections are filed within 10 days of the notice, a hearing will be held.

Meanwhile, a hearing on approval of the sale procedures is scheduled for Nov. 28.

American Home, a Melville, N.Y.-based real estate investment trust focused on residential mortgage loans, filed for bankruptcy on Aug. 6. Its Chapter 11 case number is 07-11047.

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