May 31, 2013

In a letter to homeowners, the TMA attorney outlines recent developments in the foreclosure process.

 Credit Suisse asked for a hearing on its Motion to Modify its Decree of Foreclosure. Because Credit Suisse represents the interest of both the original (2006) $250,000,000 lenders and the subsequent (2008-2009) $12,000.000 receivership lenders, Credit Suisse is taking care not to have one foreclosure unintentionally wipe out the other mortgage. In this motion, Credit Suisse wanted to make sure that its $250,000,000 loan foreclosure did not unintentionally wipe out its $12,000,000 receivership mortgage.

 

            In turn, this required that each other senior lien holder (Banner/Sabey on the Village, MHTN on the Lake Wing, BAG on the Fairmont Parcels, and Tamarack Designs/Oz Architects on the Trillium Townhomes), recognize that the receivership mortgage next be credited with any amount over what was paid to the senior lien creditor, then the Credit Suisse $250,000,000 loan, and then any remaining balance be deposited with the court or the sheriff.

 

            In addition, the lawyer for Teufel Nursery objected in part on the grounds that a technical document that the Idaho Supreme Court had sent to the trial court did not allow for the trial court to exercise jurisdiction. The judge requested further briefing on this jurisdictional question, and the parties agreed that this briefing would be submitted no later than June 31, 2013. Teufel filed its papers on May 24, and Credit Suisse replied on May 28.

 

            The Judge also had technical questions about 3 of the 4 other proposed decrees. The judge indicated that, as soon as other technical questions were addressed in the proposed decrees of BAG, MHTN, and Tamarack Design/Oz Architects, he would sign those, but he would wait to determine whether he had jurisdiction to sign the proposed amendment to the Credit Suisse Decree until after the jurisdictional issue was briefed.

 

            Again, the five Decrees of Foreclosure are:

 

            1. Credit Suisse on the undeveloped Resort property and ski facilities.

            2. Banner/Sabey on the Village Plaza.

            3. MHTN on the Lake Wing.

            4. BAG on the Fairmont Parcels.

            5. Tamarack Design/Oz Architects on about 15 unfinished Trillium Townhomes.

 

            Definitive progress will only occur after the judge signs the 5 Decrees mentioned, and when each one of the judgment creditors holding each Decree decides to ask Sheriff Bolen to conduct a sale on that particular Decree. We will keep you posted regarding any further developments, especially if a sheriff's sale is scheduled for any of these five foreclosure decrees.

           

            It remains possible that Credit Suisse will file appeals on the other four judgments, and it is likely that Teufel will appeal Credit Suisse's modified Decree. Any appeal could, again, slow down progress on other aspects of the case.