FFS Data, Inc., the parent company of US websites foreclosure.com, foreclosuredata.com and foreclosurefreesearch.com, has filed for Chapter 11 bankruptcy protection.
According to the South Florida Business Journal, FFS Data filed for Chapter 11 reorganisation on 23 December, 2009, citing US$9.1 million in assets and $27.5 million in debts. It listed gross income of $15.7 million so far this year.
Bradley Shraiberg, the attorney representing FFS Data, maintained the bankruptcy filing would only help the company. He told propertyportalwatch.com:
“FFS has filed a Chapter 11, voluntary petition for bankruptcy, to perform a traditional reorganisation (as opposed to a sale of its assets) in an effort to streamline the company by reducing its monthly expenses, reject onerous contracts, expedite the settlement of various contested claims, and to restructure its secured debt.
All of its initial motions to operate and conduct business as usual have been filed, heard and granted and the company is moving forward with the preparation of its plan of reorganisation. While there is never a guarantee in a legal proceeding, I estimate that FFS should have a plan filed within a month to a month and a half. As a result of this process, FFS believes it will emerge from bankruptcy a stronger, more profitable venture.”
foreclosure.com seemed to have a successful 2009. Hitwise rankings from early 2009 listed foreclosure.com as the 16th most popular US real estate website, and in early August it began working with Fannie Mae to relaunch its homepath.com website. Founder Brad Geisen created another foreclosure and distressed real estate website, quicksale.com, in September.
But along with these successes, foreclosure.com also had a legal battle on its hands with former data provider First American CoreLogic. As inman.com explains, this and another legal dispute with former partners created what the company describes as “severe cash flow issues”.
Despite it’s financial woes, foreclosure.com has just announced the beginning of judging in its 2009 Scholarship Program, which will award US$9,000 in prize money to the winners of an essay competition on the topic “How to Solve the Foreclosure Crisis”.