Metropolitan Place Owners Might Fight Foreclosure In Court
Construction On Willy Street Co-Op Location Halted
Posted: 8:51 pm CST February 5, 2008
MADISON, Wis. -- There could be a battle in court over a mortgage foreclosure action filed against a large downtown condo development.
VIDEO: Watch The ReportNews broke on Monday that two banks are foreclosing against Metropolitan Place Phase II and its owner.The Condo Homeowners Association is holding a board meeting on Wednesday night, and members said that developers will be asked directly about what is happening.According to one lawyer for the owners, a big part of the legal dispute is linked to the national lending crisis.In May, the popular Willy Street Co-op teamed up with the luxury downtown condo development to form a partnership that seemed destined to succeed. But eight months later, construction on the grocery store has stalled indefinitely, the building it was to call home is in foreclosure action and its owners remain defiant."We're looking at all our options," said Timothy Homar, an attorney representing Metropolitan Place Phase II owners, Buckingham LLC, and its three investors, including Metropolitan Place manager Cliff Fisher.Homar said that includes a lawsuit countering the claims by the foreclosing banks.The owners have roughly two weeks to answer claims made by the two banks, which are foreclosing on Metropolitan Place Phase II and seeking the sale of its property.LaSalle and Associated Banks said the owners are in default because loan payments haven't been made for months.But on Tuesday the defendants countered that they have been paying. Homar said that due to the lending crisis nationwide and a bank merger, the dispute is over how their payments are being credited."The national financial scene hasn't been pretty, and banks are have started to look at their lending portfolios a little differently and handling their loans differently than they had in the past," Homar said. "And so we're seeing the effect of it here, just in how the loan's being handled and how strict they are."The board president of the Condo Homeowners Association, Wayne Bigelow, said he is not worried a potential foreclosure could lower property values on Metropolitan Place condos. But he said he is worried about the situation forcing out Willy St. Co-op and leaving the retail space portion vacant."I'm worried about the retail staying empty and no one ever being able to get someone to fill it," Bigelow said.Bigelow also said the foreclosure court actions came as a total surprise to owners."It's fair to say that no one at all knew that Cliff (Fisher) was this close to being in financial troubles with Phase II," Bigelow said.Bigelow said that if a bank foreclosure goes through, the condo owners will have to reconsider their positions on all kinds of temporary agreements they've struck with Metro Place LLC Buckingham and Fisher.Homar said it's possible the dispute could drag on for months.Stay tuned to WISC-TV and Channel 3000 for continuing coverage.
VIDEO: Watch The ReportNews broke on Monday that two banks are foreclosing against Metropolitan Place Phase II and its owner.The Condo Homeowners Association is holding a board meeting on Wednesday night, and members said that developers will be asked directly about what is happening.According to one lawyer for the owners, a big part of the legal dispute is linked to the national lending crisis.In May, the popular Willy Street Co-op teamed up with the luxury downtown condo development to form a partnership that seemed destined to succeed. But eight months later, construction on the grocery store has stalled indefinitely, the building it was to call home is in foreclosure action and its owners remain defiant."We're looking at all our options," said Timothy Homar, an attorney representing Metropolitan Place Phase II owners, Buckingham LLC, and its three investors, including Metropolitan Place manager Cliff Fisher.Homar said that includes a lawsuit countering the claims by the foreclosing banks.The owners have roughly two weeks to answer claims made by the two banks, which are foreclosing on Metropolitan Place Phase II and seeking the sale of its property.LaSalle and Associated Banks said the owners are in default because loan payments haven't been made for months.But on Tuesday the defendants countered that they have been paying. Homar said that due to the lending crisis nationwide and a bank merger, the dispute is over how their payments are being credited."The national financial scene hasn't been pretty, and banks are have started to look at their lending portfolios a little differently and handling their loans differently than they had in the past," Homar said. "And so we're seeing the effect of it here, just in how the loan's being handled and how strict they are."The board president of the Condo Homeowners Association, Wayne Bigelow, said he is not worried a potential foreclosure could lower property values on Metropolitan Place condos. But he said he is worried about the situation forcing out Willy St. Co-op and leaving the retail space portion vacant."I'm worried about the retail staying empty and no one ever being able to get someone to fill it," Bigelow said.Bigelow also said the foreclosure court actions came as a total surprise to owners."It's fair to say that no one at all knew that Cliff (Fisher) was this close to being in financial troubles with Phase II," Bigelow said.Bigelow said that if a bank foreclosure goes through, the condo owners will have to reconsider their positions on all kinds of temporary agreements they've struck with Metro Place LLC Buckingham and Fisher.Homar said it's possible the dispute could drag on for months.Stay tuned to WISC-TV and Channel 3000 for continuing coverage.
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