And Then - Bang! or How a Chiwawa Beat a Rottweiler ...

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

Yesterday I postedWhat We Can See Happening In Marina Grande On The Halifax in Daytona Beach Area.

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. Marina Grande on the Halifax - DaytonaThey 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.

 

image of judgment

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…

jon zolskyLife is quiet in a small town of Holly Hill, where Marina Grande on the Halifax is proudly standing by the bridge right on the Intracoastal. At least it was meant to be…

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Florida Volusia County Holly Hill Marina Grande On The Halifax
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Rainmaker
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Sonja Patterson
Keller Williams - BV - College Station, TX
Texas Monthly 5-Star Realtor Recipient for the Hou

Jon, I'm not sure I understand.  Are you not able to close until this 5.5 mil gets paid somehow??  Good luck with this.  Sounds like a mess.

Nov 22, 2010 03:09 PM #1
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Sonja,

Or no, you can. All you need is to exclude Yates claim from the Title Insurance coverage, but how many buyers out there would agree to buy a prorperty wiith unresoved lien of over $5.5 Mil, where Yates refuses to do a Partial release.

Yes, you can buy a unit for incredible $125K, and owe to Yates cool $5.5 Mil

Nov 22, 2010 03:18 PM #2
Rainer
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Lorraine Sayer
Monument, Black Forest, Falcon, Fountain homes - Colorado Springs, CO
Realtor ABR,CDPE,GRI - Colorado Springs,CO RE/MAX

Jon your story is enough to temp someone to go back to punching a time clock.  Good luck and let us know how it all ends if it ever will have an ending. 

Nov 22, 2010 03:33 PM #3
Rainmaker
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William James Walton Sr.
WEICHERT, REALTORS® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

Wow, Jon. This sounds like a nightmare of epic proportions, at least for someone. Unless the decision gets reversed on appeal...

Nov 22, 2010 03:33 PM #4
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Pat Haddad, ABR, CRS, ePRO, GRI
Keller Williams Indianapolis Metro NE - Carmel, IN
Carmel, Fishers, Westfield IN Real Estate Expert

Jon--It sounds as if a lot of people are being harmed in one way or another with this.  Too bad a mitigator cannot step in and make decisions that would be fair to all so there can be some resolution.  Is this happening all over the place where you are?

Nov 22, 2010 04:08 PM #5
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Lorraine - we will see what happens next

Nov 22, 2010 04:15 PM #6
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

William - "nightmare of epic proportions" is a cool definition, but true: the  complex has 486 condos in two 25-story towers.

Nov 22, 2010 04:17 PM #7
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
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Pat, it is watcing a Titanic trying not to sink, while there is a huge hole and the  water is gushing.

Nov 22, 2010 04:19 PM #8
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Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Jon, what a disaster... but I don't see why the seller won't pay the 5 mil.... yeah, right. I hope this can be resolved, but it sounds like it will be years before this is resolved. Meanwhile the people who did buy are rather screwed shall we say....

Nov 22, 2010 11:00 PM #9
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Andrea - I am not sure many are are screwed. Those who bought and live, no problems. Majority (about 80%) bought as investment. Investment is always with risk, so they lost, who hasn't in this market?

I never looked at the ability to do a short sale as natural right, so if it worked, people got the better end of the stick. If it doesn't, it was investment.

I lost my money on similar things here, so what?

Nov 23, 2010 02:10 AM #10
Rainer
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Not a real person
San Diego, CA

With just 36 days left in 2010, Zoey the Cool Cat and I just wanted to stop by and wish you a very Happy Thanksgiving. Hope it’s a great one, with lots of fun and food with family and friends!

Happy Thanksgiving!

Nov 24, 2010 07:14 PM #11
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