F
annie Mae is taking further action against Moshe Silber, a New York-based landlord who has already faced prosecution for his role in a $119 million mortgage fraud scheme. The company is seeking to foreclose on six multifamily buildings in Chicago's South and West sides, alleging that Silber and his affiliates failed to pay off $10 million in loans that matured three years ahead of schedule.

    The accelerated maturity dates were due to the buildings' disrepair, which was allegedly caused by Silber's failure to make required repairs. Public records show that the city had cited the landlord for numerous building and zoning code violations, as well as housing court violations. Contractors have also filed liens against the properties, claiming they went unpaid for their work.

    Fannie Mae has filed two foreclosure lawsuits in Cook County court against an LLC registered to Silber and other entities with a shared address in Monsey, New York. The suits claim that the ownership defaulted on debt vehicles taken out in 2017, which were arranged by Arbor Realty Trust affiliates before being sold off to Fannie.

    The properties in question include six buildings totaling over 150 units in the South Shore, Washington Park, and Austin neighborhoods. Fannie Mae is seeking to foreclose on a $6.7 million loan secured by three buildings in Washington Park and South Shore, as well as a $3.3 million loan tied to two buildings in the Austin neighborhood.

    This latest development comes as Silber awaits his sentencing hearing for his role in the mortgage fraud scheme, which involved duping a lender and Fannie into providing larger debt packages than they would have otherwise. The once-vast multifamily holdings assembled by Silber's New York-based firm Rhodium Capital appear to be dwindling, with neither Silber nor his attorney commenting on the latest developments.