First State Bank Files Forecloses

First State Bank of Lonoke has filed three foreclosures totaling $7.85 million against some familiar names in Northwest Arkansas.

On Sept. 24, First State filed a foreclosure action against Mark B. Foster for a $2.08 million mortgage on the Bellwood subdivision near Rupple Road in west Fayetteville.

On Oct. 9, First State foreclosed on Dixie Management and its CEO Ben Israel for $3.32 million on three mortgages. The largest was for $2.9 million on Signature Square Plaza II on Arkansas Highway 265 in Springdale. The other two were $224,425 and $202,316 for two houses Israel owns on Starr Road in Fayetteville.

On Oct. 25, First State foreclosed two mortgages totaling $2.45 million on Mitchell Massey, Cato Springs LLC, Rick Hancock and Johnson Commerical LLC.

Cato Springs LLC and Johnson Commercial LLC belong to Massey. One mortgage for $993,814 is in Johnson and the other is for $1.45 million in south Fayetteville.

Massey, who has divested himself of millions worth of property in the last few months, along with partner Earl Waters was hit with foreclosures totaling $5.23 million by First Western Bank on Aug. 14.

Dixie has been hit with more than 50 legal actions since Jan. 1 totaling more than $10 million. The company moved out of its posh headquarters at Commerce Park II less than a month after moving in and has since divested itself of more than $50 million worth of property.

Chambers Bank of North Arkansas, which financed Dixie’s Nelson’s Crossing project at Joyce Boulevard and College Avenue in Fayetteville, entered into a second modification with the beleaguered company on Nov. 20 on a $4.05 million mortgage on Westside Village II originally signed Feb. 2, 2006.

Dixie still owes $2.67 million on the note and it has already been modified once with the maturity date extended from Jan. 31, 2007 to Jan. 31, 2008. Now it will mature on Nov. 15, 2008.