After emerging from bankruptcy, Old Snowmass property faces foreclosure again
The last time the owners of a 43-acre parcel of developed land in the Old Snowmass area faced foreclosure, they staved off the auction by declaring bankruptcy.
That was more than three years ago, and once again the Flying W Snowmass property in North River Road is slated to be sold at a foreclosure auction, with bankruptcy no longer appearing to be a remedy, based on public documents.
Last month, Deutsche Bank, which is one of the lending parties, relaunched efforts to foreclose on the Old Snowmass property, which includes a 5,890-square-foot house with five bedrooms and four-and-a-half bathrooms. Deutsche filed a motion for order authorizing sale in Pitkin County District Court.
Pitkin County Treasurer’s Office records show the property is scheduled to go to foreclosure auction Feb. 14 unless the owners, Flying W Snowmass LLC, can cure the outstanding principal balance of $3.21 million.
That’s the same amount Flying W Snowmass agreed to pay as part of a settlement that is part of its Chapter 11 bankruptcy case in Denver. The settlement in the bankruptcy case, which was dismissed Oct. 2, stipulated that the Ocwen Loan Servicing, which serviced the $3 million note that originated in May 2005, would be paid the negotiated amount in October.
The settlement came nearly three years in the making.
On Nov. 4, 2014, the eve of the scheduled foreclosure sale on the front steps of the Pitkin County Courthouse, Flying W Snowmass filed for bankruptcy protection, which canceled the auction.
“A public trustee foreclosure sale on the debtor’s rental house was scheduled for November 5, 2014,” an attorney wrote on behalf of the trustee of the bankruptcy case. “The case appears to have been filed to stay that sale.”
The settlement agreement to the bankruptcy case, however, notes that in the event that Flying W Snowmass can’t satisfy the payoff, it “consents to immediate foreclosure on the property by Ocwen. Borrower shall take no action legal or otherwise, to oppose Ocwen’s foreclosure of the property.”
As the bankruptcy case languished, the riverfront home was rented out and was listed for sale.
The listing firm, Coldwell Banker Mason Morse, currently is advertising the property for $3.895 million, its website noting that “highly motivated seller will consider all offers!”
The home, built in 2002, was intended to be an investment holding for P. Mark Weida, the controlling member of Flying W Snowmass LLC, according to court filings. The LLC was originally based in Las Vegas but relocated to Santa Ana, California, during the bankruptcy process.
Attorney Jeffrey Weinman, who filed the bankruptcy on behalf of Flying W Snowmass, did not return a telephone message left at his Denver office Wednesday. Denver law firm Barrett Frappier & Weisserman LLP, which represents the lenders seeking to foreclose, also did not respond to a message Wednesday.
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