As the legal process drags on, we see that the rains are just weathering away this building, water pours down through the roof inside the buildings wall structure and leaks out from behind the tile.
There is no such thing as a “dry” place on this building, so much for bankruptcy fixing the place up.
November 11th, 2018 – For Rent signs are removed, from corner shop and lights are on.
December 2018 update, we see a couple of changes on the building, but have no legal updates.
Last month on the 11th of November, we noticed the corner shop’s “For Rent” sign was gone; and the unit had been cleaned up, new paint, workers broke down the wall between 2 of the units, making what appears to be maybe a small restaurant?
Hard to tell, but so far it’s been a month and no one has moved in.
For rent signs on every window August 20, 2018
As we reported previously 1 day before the Burbank Theater was to be sold at public auction on August 15th, the owners of the property declared Bankruptcy – again. The husband previously declared bankruptcy in 2012, and now the wife has declared bankruptcy this time.
But there appears to be some good from this, as of August 20, 2018 we saw for rent signs pasted into all the windows of the downstairs spaces. And then more importantly some workers have showed up to clean up or fix some of the problems with the property.
As shown here, the large amounts of trash, weeds, foliage, etc. Have been cleaned up for the first time in years.
Rear of building clean, no more trash, weeds, etc October 1, 2018
We even recently saw someone working on plugging the leaks in the roof of the lower retail shops.
Workman appears to be applying roof tar to fix leaks. October 2, 2018
So while we continue to wait and see what will happen with the Burbank Theater, at least for now, it seems that the foreclosure the 2nd mortgage started in April 2018, has gotten the owners to start doing some critical repairs and keep the building from becoming a blight.
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.