More than two dozen families are facing a possible eviction after a local real estate group continues to work through portions of bankruptcy.
TimeOut Communities purchased most of the manufactured home parks throughout the region more than 5 years ago, including Prairie Knolls and Rolling Acres from Spradlin Homes in 2018. Maple Creek Estates in Woodson and Cedarbrook Estates were also purchased at that time.
In October 2023, the company that owns TimeOut called Toppos LLC based out of North Carolina filed for Chapter 11 bankruptcy. According to the filing, Toppos reported liabilities between $50 to $100 million to between 50-99 creditors. According to the filing, 21st Mortgage Corporation was owed $4.7 million by Toppos. The filing also said that Toppos owed over $136,000 in back property taxes to the Morgan County Treasuer’s Office and $55,000 in back taxes to Sangamon County. The federal court in North Carolina put a 3 month stay on 21st Mortgage from seeking financial relief from Toppos and seizing properties and assets while motions were deliberated.
The Chapter 11 reorganization was shifted to a Chapter 7 bankruptcy liquidation process in federal court on April 30, 2024. Shortly before that shift, lawsuits began popping up in jurisidctions where Toppos owned property. The suits were filed by 21st Mortgage Corporation who said that Toppos had defaulted on its loan payments.
There are currently 11 lawsuits filed in Morgan County Circuit Court, as of August 27, 2024 by 21st Mortgage against Toppos for surrendering of property to recoup the defaulted loans. The suits effect 29 separate addresses situated in Maple Creek Estates in Woodson and Prairie Knolls and Rolling Acres in Jacksonville. 90% of these addresses appear to be occupied with what the lawsuits have labeled as “unknown tenants.”
Motion hearings on the lawsuit and the fate of the occupants are expected to be heard next month in Morgan County Circuit Court. Currently, the remaining TimeOut properties have come under the control of a Michigan-based real estate group known as M. Shapiro Real Estate Group.