Tuesday, November 9, 2010

Village Property addresses the auction notices placed on 34 developer-owned condos today

Michael Health of VPM has asked Positively Palermo to post this message from him regarding the auction notices taped on front doors this afternoon:

"Dear Palermo residents,
 If you haven’t already heard all 34 units owned by the Palermo developer received Trustees Sale/Auction notices this evening, posted to their front doors or gates. 
This I know has taken many by surprise as I have been fielding calls from many of our tenants this evening.  I will have a formal notice to all 34 units this evening letting them know that I am aware of the notices being posted.
  As you may or may not know I was assigned Receiver by the courts last month to manage the developer-owned portion of the Palermo Community.  The middle person, you can say, between the bank and the developer; to see that all bills are paid including HOA assessments and property taxes.  I have been working closely with the banks lawyers to keep things moving seamlessly.
  The notices posted at these units this evening are part of the process that must be conducted by the banks. 
  I want to assure our residents in these 34 units that what I have been told through my receivership contacts is that all will continue to be business as usual for the foreseeable future.
  As information develops I will be sharing with the blog as well as directly with the Board and our residents residing in these units.
 Thank you
 Michael E. Heath
 Chief Executive Office
 Village Property Management"

Miss Penny Lane says: Thanks for this message. Watch for an update later tonight for a posting regarding the actual wording of the bank notices.

11 comments:

WORRIED said...

Michael has been putting letters on the doors tonight. I got one. Makes me think he was taken by big surprise by all these notices on the doors - no heads up from the bank? The letter I have is pretty much like the one posted here but it has two more sentences. They are;

One says "What does this mean? The bank is foreclosing on your unit to get back the property that has been in default."

The other add sentence reads "What to do? Hang tight. Nothing to respond to right now. I will have more updates. for you this week."

Michael, thanks for keeping us abreast of the news. I also suggest people email Ms. Penny with info as she has been the BIG ALLEY of VPM renters and is the custodian of knowledge and history. I will scan a copy of my letter for her. Thanx to Penny too for the news. Check you every night (or from work - wink wink!)

Anonymous said...

Yea, I got one too. I am not going to sweat if for now.

Love It Here said...

The leases we signed should be good for the entire term under the law on foreclosures.

Anonymous said...

I saw Michael and James putting letters on the door tonite. To me it looked like this was coming as a "big surprise" to them. The bank is playing hardball if they didn't even tell the local agency doing the renting out on their behalf. It's going to get bumpy?

Anonymous said...

Michael,
Thanks for the communication and quick response.

Michael Heath said...

Hello all. I want to share with you this Q&A that that was prompted by one of our residents. I felt that the questions were and my answers to those questions worth passing along as I have recieved many similiar questions since the notices were posted.

Michael,
I received your letter and the legal notice last night. I have a series of questions.

1. What timeframe are we looking at with the foreclosure? What is the date of the public auction? I have experienced this with a previous property and I have watched the date get pushed for nine months - Answer: The Auction date is November 30th however as you have stated these things can get pushed back.

2. What is my rent money funding at this time? As I continue to pay my responsibility, I want assurance that the payment is being attributed to obligations of the property. - Answer: As briefly mentioned in the letter your received, the Courts assigned me as legal Receiver for all monies and responsibilities to collect on those monies. I am mandated by the courts to pay all bills on behalf of the bank and property owner as it relates to the debtors obligations. There are no disbursements of funds to property owner or bank at this time. This includes HOA assessments, property taxes, water, city bonds, landscape maintenance, property insurance, etc.

3. At this time, is the condo I live in for sale? - Answer: No. At this time your unit is not available for sale or purchase by anyone.

4. What are my options as a renter? I have a year long lease that I intend to fulfill. Am I am the mercy of the bank for occupancy?- Answer: No not at this time unless the bank DOES foreclose and becomes the new owner. They would either continue to retain us as management, self manage or find another firm to manage. The project could also be assigned to an REO Broker and they would list units for sale. The latter is highly unlikely in my opinion. You are in a good position as a resident renter.

5. Do I have the option to purchase this property from the bank? Is there a contact person at the bank that I can get in touch with? - Answer: I don’t believe you do have the option at this time and I do not have a direct contact for the Auction dept. as I understand it, it is as a Unified Sale…which means all land, lots, and 34 condos, including the old sales models - go together as part of the complete Auction.

Anonymous said...

The new owner would have to honor the existing leases according to the "Protecting Tenants at Foreclosure Act of 2009." The only way to evict a tenant would be if the owner wanted to occupy the unit as their principle residence, and in this case would need to give 90 days notice.

Anonymous said...

How can one new renter be in a "lease to own" situation with all this going on with the title????

Anonymous said...

HOA Facebook page is useless. It did not even have anything about the Nov. HOA meeting date/time either. At this point, I wonder if people are more upset with the HOA or DRM?

Ready to Buy said...

Sorry but these units will be sold. The bank was a bit hasty in putting the rental agency in charge, unless the bank said no more leases, because buyers aren't going to want these encumbrances (the leases). Any leases signed during this foreclosure process raise some questions I think. But I'm ready to buy at Palermo. Let the auction begin.

Anonymous said...

Got my eye on one on breeze loop