FAYETTEVILLE — First Federal Bank is one step closer to collecting a $2.8 million debt against the Belclaire subdivision.
Washington County Circuit Judge Kim Smith awarded the order of distribution to the bank Wednesday. The bank is now waiting for the payment.
The subdivision along Arkansas 112 in Fayetteville is a former development of Brandon Barber.
First Federal loaned Barber, doing business as Dream Team Holdings, $5.18 million on the project in June 2005.
In a separate suit filed in March against Barber’s ongoing bankruptcy, First Federal claimed Barber also sought bond financing of $4.41 million on the same collateral — 99 residential lots. The Fayetteville Municipal Property Owners Improvement District No.12-Belclaire was created in December 2005, tax was levied and bonds were sold, according to the claim.
Bank attorney Charles Trantham confirmed Thursday the suit filed in federal court was dismissed in June and settled recently in state court because it involved the improvement district.
Trantham said the Belclaire property went through foreclosure and was sold Aug. 9 by the county commissioner.
From the sale Smith ordered $2.8 million be paid to the bank, while $2,800 be set aside for the commissioner’s fee.
First Federal CEO Larry Brandt said the bank is pleased to see the case finally settled.
“Anytime you can receive payment back on foreclosed property it’s a good thing,” Brandt said.
First Federal reported holding more than $33 million in repossessed real estate on its books as of June 30.