• Breaking News on Tamarack Foreclosure Update!

    Posted on June 21, 2012 by in Tamarack Real Estate News
    LEGAL UPDATE ON   FORECLOSURE – Steve Lord, TMA Attorney(for a copy of all of the filings, email me at trisha@trishasears.com and I will forward on 100+ page documents)

    On June 18, 2012, Judge Owen granted Credit Suisse’s Decree of Foreclosure.   That means that any party who feels “aggrieved” by any adverse   rulings that resulted in Credit Suisse, for example, being senior on   everything except the Village Plaza, Lake Wing, the BAG parcels, and certain   Trillium Townhomes, now has 42 days to file an appeal.

    Credit Suisse has indicated that it will wait 42 days before asking the   sheriff to start the process of conducting a sheriff’s sale.

    Idaho law appears to allow a sheriff’s sale as soon as 20 days after the   sheriff first provides the appropriate notices that the sheriff will be   conducting a sale. However, I anticipate that, because of the complexity of   this case, the sheriff, and perhaps Credit Suisse as well, will ask for a   longer period than 20 days.

    On June 18, the Judge also issued a Memorandum Decision regarding several   outstanding questions about process, and priority, for various parties to   conduct foreclosure sales on:

    Village Plaza

    BAG Parcels

    Lake Wing

    OZ – Trillium Townhomes

    Many of these concerns had to do with Credit Suisse’s objections to the   terminology used in the proposed decrees.

    However, the Judge did indicate that MHTN will be able to submit a credit bid   with respect to Lake Wing, BAG Holdings will be able to submit a credit bid   with respect to the Belvedere Ridge, B21, B22, and Fairmont Parcels, and OZ   will be able to submit a cash bid for the Trillium Townhomes.

    The Judge declined to allow credit bidding for Village Plaza, due to the fact   that there are so many competing and conflicting creditors, and the lack of a   cash bid at any point makes apportionment and distribution difficult if not   impossible.

    In his Memorandum Decision and Order Regarding Proposed Judgments and Decrees   of Foreclosure and Orders of Sale dated June 18, 2012, Judge Owen determined   that a cash bid should be applied to Village Plaza’s creditors in rank of   priority as follows:

    Pro rata to Tri State Electric, Kessler, and Oz Architects

    Any balance pro rata to Banner/Sabey and MHTN

    Any remaining cash to Credit Suisse

    Credit Suisse had objected to paragraphs 12 and 13 of Banner/Sabey’s Proposed   Decree of Foreclosure of the Village Plaza Property. The Judge agreed with   Credit Suisse’s objection to paragraph 12 because it addressed junior  interests that had not been adjudicated, but declined to accept Credit   Suisse’s objection to paragraph 13, because the junior interests addressed in   paragraph 13 were also those referenced under state law.

    The Judge also sustained Credit Suisse’s objection to termination of its   general borrower mortgage, because the general mortgage Credit Suisse has   with respect to most assets at Tamarack does not include the Village Plaza  Property.

    The Judge specifically indicated that the Receiver mortgage had not been   adjudicated, and therefore he would not enter any orders indicating whether   the Receiver mortgage is or is not foreclosed by any other decree.

    The Judge also addressed redemption rights. The Judge indicated that a debtor   has a statutory right of redemption under Idaho Code § 6-101 and Idaho Code §   11-401. Also judgment lien creditors whose judgment liens existed as of the   date of commencement of the foreclosure also have a redemptioner’s interest.   However, the Judge sustained Credit Suisse’s objection to language in   paragraph 16 of Banner/Sabey’s Proposed Judgment and Decree of Foreclosure in   which it seemed to reserve to Tri-State, Kessler, Banner/Sabey, Oz   Architecture and MHTN redemption rights.

    At the same time, the Court rejected Credit Suisse’s argument that Tamarack   Resort, LLC lost its redemption rights with Credit Suisse’s entry of default   and default judgment. The Court therefore overruled Credit Suisse’s assertion   that Tamarack Resort, LLC’s statutory right of redemption was cut off by the   entry of default and default judgment (Memorandum Decision Page 28).

    The Judge sustained some Credit Suisse objections, overruled other Credit   Suisse objections and requested that counsel for Banner/Sabey, OZ   Architecture, MHTN, and BAG submit revised, proposed decrees of foreclosure   reflecting the Court’s determinations. Those need to be submitted within 14   days of June 18, 2012, which establishes the submission date as July 2, 2012.

    If your interested in  reviewing the hundred or so pages of both filings they can found on   the TMA website at www.tmaidaho.com. Click on the Legal Documents   link on the left. Please be aware it will take about 30 seconds for the PDF   to download.

    Stephen J. Lord, TMA   Counsel