Power of attorney over a property in chapter 11
Posted: Sun Jan 29, 2012 9:12 pm
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Pat, are you okay? I fear something terrible has happened to you while
writing this message, kind of like happened to Joseph of Arimathea in Monty
Python and the Holy Grail. http://www.youtube.com/watch?vGEcvSq4SDkc
John D. Faucher
Hurlbett & Faucher, LLP
On 1/29/12 7:19 PM, "pat@fitzgreenlaw.com" wrote:
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> after thinking about it, it seems to me that the angel co
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> Sent from my Verizon Wireless BlackBerry
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> Sender: cdcbaa@yahoogroups.com
> Date: Sun, 29 Jan 2012 09:59:42 -0800
> To:
> ReplyTo: cdcbaa@yahoogroups.com
> Subject: Re: [cdcbaa] Power of attorney over a property in chapter 11
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> Pat, the worry here is that a hovering vulture will get into a bidding war
> with the angel at the foreclosure sale.
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> John D. Faucher
> Hurlbett & Faucher, LLP
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>
> On 1/28/12 2:28 PM, "pat@fitzgreenlaw.com" wrote:
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>> Why not have the angel buy the 2nd and foreclose along with some kind of
>> agreement betw flake and angel?
>> Pat
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>> Sent from my Verizon Wireless BlackBerry
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>> Sender: cdcbaa@yahoogroups.com
>> Date: Sat, 28 Jan 2012 11:53:10 -0800
>> To:
>> ReplyTo: cdcbaa@yahoogroups.com
>> Cc: Ed Kerns
>> Subject: Re: [cdcbaa] Power of attorney over a property in chapter 11
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>> Mark: here's what "total control" means -
>> Lender to obtain power of attorney acceptable to
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>> lender and subject to court approval to allow lender
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>> participant to act on behalf of borrower-owner to
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>> manage the renovation and deposition of the
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>> collateral including but not limited to the following: I.
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>> Sale 2. Rental 3. Deferred maintenance and repairs
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>> including staging 4. Access 5. Lender chooses real
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>> estate broker and any and all matters related to the
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>> repositioning and disposition of the property.
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>> Peter: the judge granted relief from stay because the first trust deed is not
>> being held current, and the second squawked about its eroding position.
>> Never mind that it would take nine years of nonpayment on the first for the
>> equity cushion to erode so far that the second would have less than the 20
>> percent mandated by Mellor; the judge thought that mere nonpayment on the
>> first was enough to say that the second was not adequately protected. We
>> have filed a motion for reconsideration, and the judge has set that for
>> hearing.
>> We have the impression that the second is much more interested in foreclosing
>> on the property and taking advantage of all the windfall equity than it is in
>> seeing an orderly sale take place. Thus, a stipulation to sell is likely to
>> be unavailing.
>>
>>
>> John D. Faucher
>> Hurlbett & Faucher, LLP
>> 5743 Corsa Ave., Suite 208
>> Westlake Village, CA 91362
>> (818) 889-8080
>> Fax: (805) 367-4154
>> http://www.hurlbettfaucher.com/
>>
>> 3324 State Street, Suite O
>> Santa Barbara, CA 93105
>> (805) 963-9111
>>
>> This electronic m! ail messa! ge and any attached files are confidential,
>> contain information intended for the exclusive use of the individual or
>> entity to whom it is addressed, and may be legally privileged. If you are
>> not the intended recipient, please immediately reply to John Faucher (at
>> 818/889-8080 or john@hf-bklaw.com ) indicating
>> that you received this message and then delete the message without delay.
>> Thank you for your cooperation.
>>
>> Disclosure Under U.S. IRS Circular 230: The recipient may not use any tax
>> advice contained in this communication, including any attachments, for the
>> purpose of avoiding federal tax related penalties or promoting, marketing or
>> recommending to another party any particular transaction or matter.
>>
>> On 1/28/12 11:39 AM, "Mark J. Markus" wrote:
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>>> Not sure I understand what "total control" means. Collecting rents?
>>> Improving the property?
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>>> The financing can be done on a superpriority basis if the requirements are
>>> met under 364c; perhaps that would satisfy her?
>>>
>>>
>>>
>>> *************************
>>> Mark J. Markus
>>> Law Office of Mark J. Markus
>>> 11684 Ventura Blvd. PMB #403
>>> Studio City, CA 91604-2652
>>> (818)509-1173 (818)509-1460 (fax)
>>> web: http://www.bklaw.com/
>>> This Firm is a Qualified Federal Debt Relief Agency (see what this means at
>>> http://bklaw.com/bankruptcy-blog/2008/0 ... efinition/)
>>> ________________________________________________
>>> NOTICE: This Electronic Message contains information from the law office of
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>>> and cannot be used, for the purpose of (i) avoiding penalties under the
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>>> another party any transaction or matter addressed in this communication.
>>>
>>> On 1/28/2012 11:12 AM, John D. Faucher wrote:
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>>>>
>>>>
>>>> Chapter 11 client has a beachfront house worth anywhere from $4 million to
>>>> $10 million. Second lienholder has relief from stay, and we
>>>> obviously want to save the house.
>>>>
>>>> Enter our white-knight financier. He offers to buy out the second
>>>> lienholder and see the property through to a genuine sale over the course
>>>> of the next 12 months, but because the client is a flake, he wants to have
>>>> total control over the property. He is asking for her to grant him a
>>>> general power of attorney over the property. Effectively, he wants to
>>>> become the trustee for this property only (there are others in the case).
>>>>
>>>> I see problems with this: the debtor-in-possession is a fiduciary to the
>>>> creditors, the white-financier is not. She is under court supervision, he
>>>> is not.
>>>>
>>>> Surely this has come up in someone's chapter 11 case: the debtor is so
>>>> untrustworthy that a lender is willing to give financing only if he can
>>>> control the property too. Here, we think we'd like to give him that
>>>> control. By what mechanism can this be done?
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>
>>>> John D. Faucher
>>>>
>>>> Hurlbett & Faucher, LLP
>>>>
>>>>
>>>>
>>>> 5743 Corsa Ave., Suite 208
>>>>
>>>> Westlake Village, CA 91362
>>>>
>>>> (818) 889-8080
>>>>
>>>> Fax: (805) 367-4154
>>>>
>>>> http://www.hurlbettfaucher.com/
>>>>
>>>>
>>>>
>>>>
>>>> 3324 State Street, Suite O
>>>>
>>>> Santa Barbara, CA 93105
>>>>
>>>> (805) 963-9111
>>>>
>>>>
>>>>
>>>> This electronic mail message and any attached files are confidential,
>>>> contain information intended for the exclusive use of the individual or
>>>> entity to whom it is addressed, and may be legally privileged. If you are
>>>> not the intended recipient, please immediately reply to John Faucher (at
>>>> 818/889-8080 or john@hf-bklaw.com )
>>>> indicating that you received this message and then delete the message
>>>> without delay. Thank you for your cooperation.
>>>>
>>>> Disclosure Under U.S. IRS Circular 230: The recipient may not use any tax
>>>> advice contained in this communication, including any attachments, for the
>>>> purpose of avoiding federal tax related penalties or promoting, marketing
>>>> or recommending to another party any particular transaction or matter.
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>
>>>>
>>>
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>>>
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Pat, are you okay? I fear something terrible has happened to you while writing this message, kind of like happened to Joseph of Arimathea in Monty Python and the Holy Grail. http://www.youtube.com/watch?vGEcvSq4SDkcJohn D. FaucherHurlbett & Faucher, LLPOn 1/29/12 7:19 PM, "pat@fitzgreenlaw.com" <pat@fitzgreenlaw.com> wrote:
after thinking about it, it seems to me that the angel coSent fromr" <j.d.faucher@sbcglobal.net>
Sender: cdcbaa@yahoogroups.com
Date: Sun, 29 Jan 2012 09:59:42 -0800To: <cdcbaa@yahoogroups.com>ReplyTo: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Power of attorney over a property in chapter 11
Pat, the worry here is that a hovering vulture will get into a bidding war with the angel at the foreclosure sale.
The post was migrated from Yahoo.