Business

Bank seeks to foreclose on west-side Econolodge

A Tennessee bank has filed to foreclose on a west Wichita hotel.

Community South Bank of Knoxville is seeking repayment of a $1.2 million mortgage loan it made to Petali Inc. to buy the Econolodge at 800 S. Holland, near Kellogg and Ridge Road.

Petali bought the hotel in February 2008. That day, Petali and its agents, Bhupendra and Raman Patel, took out two mortgages with the bank totaling more than $2 million.

Petali later took out an $855,000 mortgage from Frontier Financial Partners of Emporia — backed by the U.S. Small Business Administration — and paid off one of the bank mortgages.

The Patels could not be reached for comment.

The state placed a tax warrant on the company seeking more than $137,000 in transient guest taxes.

Attorney Edward Robinson of Joseph & Hollander, who is representing the bank, said the foreclosure could go through in as soon as 90 days, depending on how hard the Patels or the other mortgage holders contest it.

The bank will seek to sell the hotel fairly quickly once the foreclosure is complete, Robinson said.

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