December 2, 2008 - Pasquinelli Homebuilding's Cedar Creek subdivision, Joliet IL

First Midwest Bank is foreclosing on Pasquinelli Homebuilding's Cedar Creek subdivision.

The bank filed a foreclosure lawsuit against the company Nov. 7 in Will County Circuit Court.

According to the lawsuit, Pasquinelli is in default in the amount of $6,740,408 for the Villas of Cedar Creek and an additional $4,329,273 for the Reserves and the Estates at Cedar Creek.

The loans are now due in full, along with default interest, the lawsuit stated.

Cedar Creek is along Millsdale Road, west of Illinois 53 and south of Sharp Road.

A hearing on the foreclosure lawsuit is scheduled for 1:30 p.m. on Jan. 12 in the Will County Court Annex.

The home builder has foreclosure problems in other areas, too.

Park National Bank has filed foreclosure lawsuits on the company's subdivisions in Kane County and South Carolina, according to Crain's Chicago Business.

Pasquinelli representatives could not be reached for comment Monday.

The company's Web site says the business was started in 1956 by Bruno and Tony Pasquinelli, sons of Italian immigrants. The family-owned company has built more than 45,000 homes in 13 different metropolitan areas.

Pasquinelli isn't the only home builder that is struggling in the post sub-prime mortgage crisis.

Warrenville-based Neumann Homes, one of the largest builders in the Chicago area in recent years, filed for bankruptcy in November 2007.

Original Story - SunTimesNews

Update January 6, 2009

A Cook County judge entered a $1.1 million verdict against Pasquinelli, Inc. Tuesday for constructing flawed Lake in the Hills homes.

The lawsuit, filed against Pasquinelli, Inc., ruled in favor of five Lake in the Hills families, according to a release from the Law Firm Adamski and Conti, who represented the affected families.

The jury found that Pasquinelli committed fraud on the homeowners, awarding them $605,929 in damages, $200,000 of which was for punitive damages. Judge Susan Zwick, who presided over the trial issued a separate written opinion finding Pasquinelli guilty under the state's Consumer Fraud Act and assessing an additional award of $550,000 for attorney's fees.

The suit, initially filed in 2001, alleged that Pasquinelli built the homes in a shoddy manner and constructed the homes on a high water table, which caused flooding and cracked foundations.

In her opinion, Judge Zwick found that the workmanship in the homes was shoddy and not in compliance with the model homes that Pasquinelli used to sell the homes. In addition, the homes were built on what was formerly a wetland. Pasquinelli did not take the proper engineering steps and precautions to insure that the water issues on the land did not interfere with the integrity of the homes.

The Court found that Pasquinelli knew and failed to disclose these defects and therefore acted in reckless disregard for the rights of the home purchasers. According to Judge Zwick, attempts by the plaintiffs to rectify the problems "were met with delays, denials, refusal, or insults."

Plaintiffs' lawyer Karen Conti of the Chicago law firm of Adamski & Conti stated that, "My clients put their life savings into these homes. What Pasquinelli did to them to them is outrageous. At every juncture, we tried to settle and Pasquinelli refused to acknowledge these obvious defects. I hope that the judge and jury have sent a message to Pasquinelli to treat its customers fairly in the future."

Source - Press Release Law Firm Adamski and Conti