The attorneys of Gordon A. Etzler & Associates, LLP want to congratulate their Senior Partner Gordon A. Etzler for successfully defending a mortgage foreclosure action over a large commercial project for an out of state client against a large regional bank.
The original foreclosure action was due to the economic downturn and recession that our Client suffered over four years. The project was valued before the recession and at over $8 million and at today’s value was $4.2 million but it had loan indebtedness in excess of $7.2 million-which left a shortfall of $3 million. The out of state mortgagors and operators were facing a personal deficiency judgment in excess of $3 million. (A deficiency judgment is a judgment against person(s) or corporation(s) for the difference between what a property can bring on the market in a sale, usually a distressed sale, e.g. short sale, and the amount owed on the loan, including original principle, interest, and costs and fees of the sale, and penalties. Often these deficiency judgments can attach to individual members or officers of a business or corporation through personal guarantees signed at the execution of the loan.)
Mr. Etzler was able to develop a factual situation through the taking of depositions of critical bank personnel and other persons who have expressed an interest in buying the project from the bank at below the level of debt against the property to show that such action would constitute inequitable procedure against the debtors which would preclude foreclosure. As a result, the bank developed to either back off of a legally compromising strategy which it was employing to settle the extensive favorable price and accept as total consideration for its indebtedness a deed in lieu of foreclosure and giving to the individual debtors a full and complete release of any personal liability together with a reassignment of accessory collateral which it was holding.
This is believed to be a legal position which was championed by Mr. Etzler which occurred only one other time in Southern Indiana. Attorney Etzler noted that at the beginning there appeared to be no fault of either party. Both the bank and our Clients were experiencing extreme and difficult economic and financial choices because of the ongoing recession; however, Attorney Etzler argued that this did not give extraordinary or ultra-legal rights to the bank to pursue a strategy which permitted an inequitable windfall in the purchase price to potential third part(ies) with the assistance of the bank.
All in all, Mr. Etzler was able to renegotiate based on the terms of the original mortgage, avoiding any deficiency judgment, and was able to keep our Clients’ financial future secure in stopping foreclosure proceedings. Our Clients can now go on to operate other like operations at a reasonable profit without concerns of local legal actions.
If you are the subject of a mortgage foreclosure action, hire an experienced mortgage foreclosure attorney at Gordon Etzler & Associates, LLP. We can help. Don’t let the powerful banks run you over with their teams of expensive attorneys. Stand up for your rights and protect your family’s home or your business property from foreclosure by hiring an experienced mortgage foreclosure defense attorney TODAY. CALL FOR FREE CONSULTATION. (219) 531-7787.
