Tamarack Legal Update 2-21-14
Sheriff's Sale on Credit Suisse Judgment
Credit Suisse has rescheduled the sale of the Tamarack Mortgage collateral (the Mountain Facilities, the undeveloped Heritage parcel, undeveloped lots, personal property and intangibles) so that Valley County Sheriff can conduct a sale at 1:00 PM on March 10, 2014, at the Valley County Courthouse in Cascade, Idaho.
At 1:30 P.M., the Credit Suisse has scheduled the Sheriff's sale of the Lake Wing real property, subject to the MHTN first lien.
Redemption Periods
Several periods of redemption are expiring soon. Fifteen of the Trillium Townhomes secured the architects' lien from Oz Architects, later assigned to Tamarack Designs who proceeded to a sheriff's sale on August 19, 2013. That redemption period expired on February 19. Immediately prior to the expiration, Credit Suisse redeemed its equity in the townhomes. TMA expects to see a Sheriff's deed confirming unencumbered title to Credit Suisse or an assignee of Credit Suisse in the next few days.
The Village Plaza/Banner-Sabey period of redemption expires on March 5, and the Fairmont/BAG parcels' period of redemption expires on March 24.
With respect to Credit Suisse's Tamarack Mortgage, that period of redemption will expire March 10, 2015 (one year after the sheriff's sale), assuming that the March 10, 2014 sale is not rescheduled or postponed. Because the Lake Wing parcel is less than twenty acres, that period of redemption will expire in six months, on August 10, 2014, again, assuming no postponement or rescheduling of the sale.
Under Idaho law, parties allowed to "redeem" are the judgment debtor (Tamarack Resort LLC) and "redemptioners," which in general include judgment and mortgage creditors whose interest is junior in time to the foreclosed lien. In general, the debtor or a redemptioner can pay the first party that foreclosed its lien the value of its credit bid, plus taxes, TMA assessments and LID payments paid since the sheriff's sale, and in return the redemptioner receives a new Sheriff's certificate of sale. If a second or subsequent redemptioner wants to obtain possession, it can do so by paying the first redemptioner's purchase price plus the value of all prior redemptioners' mortgages or judgment liens. Redemption comes to a complete stop at the end of the 12 or 6 month redemption period. At the end of the redemption period, the Sheriff issues a deed to the highest bidder in the chain from the initial sheriff's sale including any redemption.