Lawyers for PNC Bank claimed Annabi, 41, stopped paying her $2,745 monthly mortgage in January 2010, the same month federal prosecutors indicted her -- as well as Jereis and politically connected lawyer Anthony Mangone -- on public corruption charges.
A Manhattan federal jury in March convicted Annabi and Jereis of those and other charges -- including one that involved her lying on her application for the $440,000 mortgage on the two-story Bacon Place brick home where her parents still live.
Lawyers for PNC Bank declined to comment on the foreclosure lawsuit, which was filed in June 2010 in State Supreme Court in White Plains. It's not uncommon for foreclosure proceedings in New York State to take up to three years to be resolved.
Annabi refused to comment for this story.
Annabi bought the three-bedroom home in July 2004 for $550,000. She paid $110,000, or 20 percent of the purchase price, as a down payment, according to county records. Federal prosecutors charged that Jereis gave Annabi $10,000 for the down payment. The money was part of more than $170,000 in gifts and cash Jereis gave Annabi over several years to control her council vote on key development projects in the city, prosecutors said.
The remainder of the purchase price was secured through a $440,000 mortgage Annabi received from National City Bank. That bank merged with PNC Bank in 2008.
Annabi signed the mortgage papers on July 30, 2004. Prosecutors said she illegally inflated her income and did not disclose a mortgage she had taken out on another property she had just purchased for $506,000 on Patton Drive -- less than four blocks from the Bacon Place home. She sold the Patton Drive house in 2005 for $561,000.
As of June 4, 2010, Annabi still owed $409,032 on the Bacon Place mortgage, according to court papers.
She currently lives in a co-op apartment she owns on Rumsey Road in Yonkers.
Federal prosecutors filed papers in her foreclosure case, saying they want the opportunity to buy the home if a state court allows PNC Bank to foreclose.
The government previously had asked in the indictment to claim the house as forfeiture in the criminal case.
A spokesman for U.S. Attorney Preet Bharara declined to comment on the matter. Jereis' lawyer did not return calls seeking comment.
Annabi put up the Bacon Place home, located on a quiet, leafy street tucked in the northeast part of Yonkers, as part of her $300,000 bond package after the indictment.
Annabi is currently free on bond and working on her post-trial motion that will ask a federal judge to throw out the jury's guilty verdict.
Mangone pleaded guilty in November 2010 and agreed to cooperate with federal prosecutors. He testified against Jereis and Annabi at their trial and has not yet been sentenced.
Annabi and Jereis are scheduled to be sentenced Sept. 20.
Annabi faces up to 161 years in prison. Jereis faces up to 65 years.