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Eron Lenders
Project Name: Mariner Ridge ("Mariner")
Lender update
April 18, 2000
Further to our letter of May 27, 1998, we are writing to provide you with a further update on the status of the above noted mortgage.
Current Status
The 11 remaining townhouses forming the principal security on the second mortgage have now been sold with the last sale completing on September 24, 1999. As mentioned in our last report, the Judicial Trustee agreed to allow the borrower to continue to market the above townhouses with Ms. Marian Burnett of Remax of Duncan. The units sold for selling prices ranging from $162,500 to $186,700 with the average selling price being $173,000 (before commissions).
The Judicial Trustee held an auction sale of the units on March 13, 1999, which resulted in two sales. With a slumping real estate market, we lowered the selling prices on the remaining units several times to reflect current market prices. The sale of the last unit completed on September 24, 1999.
The first mortgage holder, Affirmed Mortgage Group ("AMG") has now been paid out in full. Through our solicitors, Fasken Martineau & DuMoulin, we attempted to argue that certain AMG mortgage modification and extension fees totalling approximately $92,000 were not secured advances under their mortgage. We were successful in having their mortgage repayment reduced by approximately $20,000.
Based on our estimates, the total of the funds received will not be sufficient to cover the indirect costs associated with this project. Consequently, we do not believe that there will be any recovery of Lender funds from the project.
Lender Communications
We will continue to communicate directly with all lenders. However, we urge you to take advantage of the web site at http://www.eron-pwl.com for project specific updates as well as related Court orders and other general information. The Eron Lenders Committee has set up an information line, which can be reached by dialling (604) 878-4484. If you need information on reclaiming tax paid on interest income in prior years, please call David Craig at (604) 713-6680.
Should you have any questions, please contact your representative on the Mariner Ridge Project Lender Committee.
Yours very truly,
Judicial Trustee
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