Bankruptcy delays foreclosure in Old Snowmass
The owners of an Old Snowmass home have thwarted a foreclosure auction, at least temporarily, after filing for bankruptcy.
On Nov. 4, which fell on the eve of the scheduled foreclosure sale on the steps of the Pitkin County Courthouse, Flying W Snowmass LLC filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Denver.
The home sits on 43.7 acres and is located at 50 N. River Road, property records show. It is nearly 6,000 square feet and has four bedrooms and 41/2 bathrooms.
The bankruptcy petition lists two banks, both out of state, as being owed a combined $3.46 million in outstanding mortgage loans. Deutsche Bank is owed $3.2 million of that sum.
The Pitkin County Assessor’s Office gives the property an actual value of $2,655,700; the bankruptcy petition claims it is worth $5 million.
The bankruptcy marks the latest move concerning the property, whose owner has been staving off foreclosure proceedings since March 2011. It’s a strategy that’s been employed by other local concerns faced with foreclosure.
Among them have been Aspen Main Street Properties LP, the owner of the old Stage 3 movie theater property; and Mountain House Lodge and Dancing Bear Lodge. All filed for bankruptcy to avoid foreclosure.
U.S. Bankruptcy Trustee Patrick Layng noted the timing of the Flying W Snowmass’ bankruptcy in a court filing made Nov. 6.
“A public trustee foreclosure sale on the debtor’s rental house was scheduled for November 5, 2014,” attorney Leo Weiss wrote on behalf of Layng. “The case appears to have been filed to stay that sale.”
The trustee’s filing was made in a response to a motion filed by Flying W Snowmass, which asked the court to approve a payment plan for its attorneys, who could end up billing more than $5,000 monthly if litigation ensues.
“The professionals in the case may be at considerable risk due to the effort which will be required and the anticipated litigation which will be required,” Flying W’s motion says.
The trustee’s response, however, contends that Flying W’s rental income combined with $16,000 in property taxes and a minimum interest payment of $36,000 on its mortgage debt “suggest that the debtor must propose a viable plan of reorganization promptly in the case and that it lacks the cash to engage in litigation at the disclosed rate of $5,000 a month.”
The bankruptcy petition describes the real estate as a “rental/investment property” that has drawn $41,624 so far this year in rental income as well as $41,992 in 2013.
Bankruptcy records show that Flying W Snowmass is owned by P. Mark Weida, of Las Vegas. He is the treasurer, director and president of Leading Edge Motorsports in Las Vegas. His Old Snowmass phone number is no longer in service.
Lawyer Jeffrey Weinman, who filed for the bankruptcy, did not return telephone messages left at his Denver offices Thursday and Friday. The Denver law firm pursuing the foreclosure action, Aronowitz & Mecklenburg LLP, also could not be reached.
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