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
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.
Back in early 2016, 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.
The rules 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.
Seems the New Year hasn’t changed much, once again the Auction has now been delayed, this time scheduled
for February 22nd, 2016 @ 10am – and once again no explanation given.
EDIT 02/22/2016: Superior Court of Santa Clara court case filed, Judicial Foreclosure will decide the fate of the Burbank Theater.
Happy New Year everyone!