Boulder court allows foreclosure sale of condo complex to go ahead

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A foreclosure sale on condominium units at 1002 Walnut St. in Boulder will be allowed to go ahead on Wednesday, despite the owner’s request for a court to impose an injunction on the sale.

George Williams LLLP, headquartered at 6700 Lookout Road in Boulder, filed for an injunction on Monday to try to stop Wednesday’s sale of the property. The company signed a promissory note, secured by a deed of trust, on December 11, 2020, for over $5.7 million. The lender, 1002 Walnut Investments LLC, a Miami-based company, filed a notice of default on the loan a year later.

The George Williams Company does not dispute the loan, none of which has been repaid, according to county public trustee records, or that it is due. His lawsuit tried to change the mode of sale.

The property includes several buildings, five of which are collateral on the loan. George Williams said in his filing that the overall property was worth more than the loan. He wanted the public trustee to sell the buildings sequentially until the debt was paid. The lender, however, in a response also filed on Monday, said selling properties one by one would diminish sales potential, as buyers wanting the entire property held as collateral would have to win multiple auctions instead of one. only. The lender cited the loan documents which gave it the authority to determine the mode of sale. The lender also opposed the last-minute legal action, when it filed its election notice and application on February 14, 2022.

Public Trustee records show that George Williams hoped to repay the debt; a notice to this effect was filed on May 31. The total amount to settle the debt would have been $6.6 million after adding interest and fees.

District Court Judge Patrick Butler filed an order, also on Monday, allowing the trustee’s auction to proceed as scheduled.

“The court is troubled by the timing of the motion for TRO (temporary restraining order) 2 days before the foreclosure sale. Defendants are entitled to collect from the foreclosure sale the extent of the debt owed to them. All of the above amounts should be paid into an attorney’s trust account or with the clerk of court pending further court orders. The TRO is denied, but the defendants can only collect the amount owed to them.

George Williams is represented by Robert Podoll of Podoll & Podoll PC, Greenwood Village; 1002 Walnut Investments is represented by David Laird of Moye White LLP in Denver. Neither lawyer responded to requests for comment.

The case is George Williams Limited Liability Limited Partnership v. 1002 Walnut Investments LLC. It was filed in Boulder County District Court with file number 2022cv30387.

This article was first published by BizWest, an independent news agency, and is published under a license agreement. © 2022 BizWestMedia LLC.

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