Category Archives: Foreclosure

Friday the 13th, its alive! Foreclosure returns!

picture from – commons.wikimedia.org

UPDATED: 10/7/2019 – Auction has no bidders! The 1st mortgage now takes title to the Burbank Theater! After 4+ years of the foreclosure monster roaming the Theater this part of the story is finally done!

 

For those who know the actual origin of Friday the 13th, or only know of the Films, in either case it is an appropriate day for the next Chapter in the history of the Burbank Theater.

As we reported many times before, this property had – many – unpaid loans on it, the current owners bought the property at the court house steps in June – from the “2nd mortgage” – knowing that a “1st mortgage” still has legal claim.

What has been happening between the new owners and the “1st mortgage” between June and now is unknown, but the “1st mortgage” on September 13th, aka Friday the 13th, resumed their Foreclosure by updating their – Notice of Trustee Sale.

As shown this is the same property sale information we posted here in 2015.  But now the price which in 2014 was $1.7 million on title search records, shot up to $2.35 million in 2015, and now they want a whopping $3.6 million!

Now, how does a Notice of Trustee Sale, resume after years of being cancelled – not delayed – on only 20 days notice, especially with totally new amounts – $3.6 million now?  Will they really be ready to sell at the court house steps on October 7th, 2019?  It all seems – to say the least – uncommon.  Or perhaps even legally questionable, guess we will find out soon!

Where’s the popcorn, this story just keeps having all sorts of new twists and turns.

Will the 1st mortgage really foreclose now after delaying on and off since 2014?  If they take it to auction for $3.6 million will anyone bid?  (multiple records on Loopnet show the previous owners tried and failed to sell the building for $1.9 million in Dec 2014)

If a new owner really buys the property, will they try to get around the Historic protections on the Burbank Theater to keep the building history?  i.e. similar to the fights we saw in nearby Cambrian Plaza with the carousel sign – or will the new owner like this current one try to actively restore the Theater?

We recently were told the Burbank Community Association was meeting with Santa Clara County about the need for cleaning up the toxic chemical property next door to the Burbank Theater, will this restart talks of Government taking these properties for the good of the community?

In 2012 many active plans were in motion to turn the Theater and surrounding areas into a large government owned community center, at the time delayed and put on hold due to budget approvals, but with the State coffers now overflowing at somewhere between $13 to $30 billion – could Government again be pondering these previously on hold ideas?

Foreclosure Sale, June 12, 2019!

Bankruptcy Case, failed.  On May 28th, 2019 the case started by one of the owners was dismissed.

As was previously published nearly a year ago, http://www.burbanktheater.com/foreclosure-sale-august-15th-2018/ – the 2nd mortgage (NOT the 1st mortgage) is auctioning the building, therefore this sale is “pursuant to the legal claim by the 1st mortgage”.

Per “The Foreclosure Co, Inc.”, current schedule, puts the auction of this building at 10am on June 12th, 2019.  http://www.foreclosureco.com/14091.html

DELAYED – Foreclosure Sale, August 15th, 2018!

In a rather odd turn of events, the 2nd mortgage holder – started it’s own foreclosure WITHOUT reinstating the 1st mortgage.

This means the building will be auctioned off for whatever the 2nd mortgage is due. And whoever buys the building, will buy it with the ~2.8 million 1st mortgage still wanting to get paid.

Normally when a junior lien like a 2nd mortgage forecloses it will first pay the 1st mortgage for any overdue amounts they are owed, else you risk having the 1st mortgage take the building or demand payment for the full amount the 1st mortgage is due.  But in this case, the 2nd mortgage appears to be going where very few have gone before, and they will attempt to sell a building, that the 1st mortgage has been in the process of foreclosure for over 3 years.

Public listing of the Trustee Sale is in today’s San Jose Post Record Newspaper. With public auction scheduled for August 15, 2018!

UPDATE: 8/14/2018 – the property owner has declared bankruptcy, and this sale has been delayed.

Years end and no resolution in sight.

Back in early 2016scales-of-justice, the 1st mortgage officially filed a lawsuit against the owners (and all lien holders) of the Burbank Theater, Santa Clara County Superior Court Case @115CV284426.

So what has happened in almost 2 years?

Lawyers have come and gone replaced by newer lawyers, each time adding new delays.

New defendants have showed up with claims, only to be retracted or never followed through in later hearings.

The clerks office went on strike further delaying default judgement, and 1st mortgage has been waiting till each new case management conference to do anything… So the case is now scheduled for it’s next action “in the next 90 days” with the only hard-ish date now set for April 2018.

The light at the end of the tunnel?  It’s there somewhere, the good news now is – it’s very clear who the owners are and who the owners are not.

Happy New Year everyone!

End of June 2018 update: Case dismissed? Strange doesn’t even begin to explain this; the judicial foreclosure was dismissed by the bank without any explanation.  This implies the 1st mortgage will return to a standard foreclosure, but no date has been publicly set at this time, and they are not returning Email or Phone calls.

Judicial Foreclosure!

The scales-of-justicerules have changed, the 1st mortgage officially filed a lawsuit against the owners (and all lien holders) of the Burbank Theater, Santa Clara County Superior Court Case @115CV284426.

A Judicial Foreclosure with all it’s benefits and problems will be the way that the Burbank Theater’s future will be decided.  The first “Case Management Conference” with Superior Court happened in December 2015, and the judge ordered all defendants be served.

The good part of Judicial Foreclosure process means the owners will likely lose possession of the building very soon, but legal ownership and other details of the judicial foreclosure process implies that this building may stay in it’s current form for another 2 years.