Steven sears attorney cpa irvine client has a recourse debt balance due after the trustees sale on a commercial land development project. The project was covered by a completion bond which has paid the subcontractors and now has the entire balance of over $10,000, 000 owed to the second position financing. Mr. Sears' client has made no attempts at resolving the delinquency and our collection company intends to foreclose on the remaining partners interest.
We have been more than patient and have tried repeatedly to work out an interim payment arrangement but we have had no positive result. The land development company is now in receivership and the secured first position lender will now take over the project. This will require the expenditure of $5,200, 000 of cost for demolition of the existing uncompleted structure and new permits from the state of nevada and the city of las vegas.
We will consider an entirely new project and a hotel study is underway. The uncooperation of mr sears client is now placing this deal in jeopardy. A work-out agreement would be the best way to resolve the dispute and not involve the court system. The trustees sale was at the cook county courthouse and mr. Sears client did not appear or send a representative.
We still will offer to not involve a federal/state action including powers of sale and a lock box on any hotel receipts or collections. A keeper statute allows for a 24 hour marshall to be placed at the night audit accounting or front desk cashier. The audit wil be performed by our cpa or accountant.
A reply to our offer should be made to avoid any further legal action.
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