Public auction of 34 Palermo condos once held by the developer is supposed to happen this afternoon

KESQ came to Palermo to report on the notices and renter rights

Today is the day of the scheduled public auction of the 34 condos at Palermo Palm Springs once owned by the developer, the Enterprise Cos. of Chicago. The auction has been set for 1:30 p.m. Nov. 30 in Corona. The "Notice of Unified Trustee's Sale" posted on the front doors of the 34 condos on Nov. 9 said the property would go to the highest bidder. KESQ Channel 3 earlier this month reported on the situation. Now the question is: Will the auction really happen today? Here's the background from Positively Palermo's Nov. 9 posting: "Palermo Palm Springs this evening has been papered with 'Notice of Unified Trustee's Sale' documents taped on the front doors or metal gates of 34 unsold residences. You can read earlier postings on this site for the history of MB Financial Bank in July issuing a 'Notice of Default' against PS Venture Indian Canyon / San Rafael LLC (aka the Enterprise Cos. of Chicago), as well as the filing of a lawsuit against Enterprise owner Ron Shipka Sr. over personal guarantees of loans for Palermo and the nearby Murano development. Two Enterprise executives resigned from the Palermo HOA in July after the bank filed a 'Notice of Default' back then. The executives, at that time, said their company expected to lose interest in the property within 30 days. The new 'Notice of Unified Trustee's Sale' posted on the doors today mentions $13,548,272.40 in outstanding debt. It also states that on Nov. 30, 2010 at 1:30 p.m., Fidelity National Default Services, as duly appointed Successor Trustee, will sell the property at public auction to the highest bidder for cash. The auction will be at 849 W. Sixth St. in Corona." But today we also must focus on the plight of the renters living in these 34 units. The units have been leased out since the spring of 2009. Some new renters apparently have even moved in some Enterprise units in the past weeks after some prior tenants left. KESQ Channel 3 noted that renters of foreclosed properties have rights. The TV station said: "If you're month to month, you have at least 90 days from the day the property is sold. If you have a long-term lease, the new owner must honor the agreement and allow you to stay until the lease is up. The new owner or Realtor may try to pressure you to get out, but ... know your rights. Tenants Together is a California non-profit looking out for renters' rights. You can call its hotline to get help. The nonprofit organization can even help you be proactive by looking up financial information about your landlord for free. The hotline toll-free number is 1-888-495-8020. Or check out its Web site." Miss Penny Lane says: Her thoughts are with our neighbors in these units and everyone looks forward to an update from the managers on what did or didn't happen today.