I ended it with a “Bang!” Something happened that nobody expected. And promised to continue…
Historical part: The GC and a bunch of subcontractors that worked on Marina Grande on the Halifax were not paid, or were not fully paid. General Contractor – Yates & Sons Construction Company - was arguing with Chase for quite some time. They claimed that they were owed over $9 Mil. The Lender squared payments with subcontractors, and the final amount of the Claim of Lien is said to be just pennies over $5,506,000 (quoting from memory, so there are pennies left).
There is a bitter dispute raging between the GC and Chase over the work done on Marina Grande on the Halifax. And while there were no sales, it wasn’t really going anywhere. Now, that there were 3 sales and some other properties were going either to Short sale of foreclosure, the battle field changed dramatically.
In 3 foreclosure sales, as far as I understand, the second lien was wiped out, and that means that Yates and Sons Construction Company did not get a penny. I do not know whether it was just a coincidence, or they renewed their legal attack, but they vigorously tried to get into the first position, and force Chase to pay them off.
I am not the attorney, so I asked an attorney. I was told that it was complete BS, and they will never get in the first position.
That made me breathe better… for one day. As the next day I was looking at Partial Summary Judgment where the Plaintiff was Chase Home Finance, LLC and among the defendants there was Yates and Sons Construction Company.
Chase wanted to foreclose on the unit of my client and filed the complaint with the court. It is a 6- page document, and I am only quoting a small part of it here, but it is very interesting.
Hysterical Part: The court actually agreed with the defendant in this case, and allowed Yates and Sons Construction Company to be in the first position regarding this claim.
I do not even know yet what it means for my client. We have negotiated the whole short sale of their unit in Marina Grande on the Halifax, have approval, and are now stuck. We were supposed to close quickly, but here we have over $5.5 Million hanging.
We contacted Yates' attorneys to get the partial release, and they said “No”. No partial releases. You want to sell a unit, pay $5.5+ Mil and then do whatever you want.
The funny thing is that they did not put a number on any unit. It is the whole amount or nothing.
Nice twist, isn’t it?
I would not be surprised to know that I am not the only one who never heard about the GC taking the first position over the major US bank.
That’s the story number 2. And I think there is number 3 in a fetus stage… at least something is kicking me in the stomach…