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Eron Lenders
Subject: 3rd and 4th Mortgages on 888 Sentinal Drive, West Vancouver
Borrower: George and Sharon Rusin
Lender update
November 6, 1997
Further to our letter dated November 5, 1997 we are writing to update you on the status of the above noted mortgage.
Project Status
The loan was demanded on November 3, 1997 and foreclosure commenced on November 25, 1997. An updated appraisal received on January 14, 1998 valued the residence at $2,700,000. Prior encumbrances totalled $1,965,615 plus accrued interest, consisting of a first mortgage of $1,103,000, second mortgage of $850,000 and realty taxes for 1997 of $12,615.
Court Order for Sale of residence was entered on May 22, 1998 giving PricewaterhouseCoopers Inc. as Judicial Trustee the right to sell the residence. The residence was listed at $2,695,000. There were no offers and very little sales activity on the residence. With the declining real estate market it was agreed the listing price would be reduced to $2,495,000 to try and generate some sales activity. On June 3, 1998, George Rusin filed a notice of bankruptcy.
Our conduct of sale expired on July 27, 1998 and on August 10, 1998 conduct of sale was granted to the second mortgage holder. On September 17, 1998, an updated appraisal was obtained showing the market value of the residence had declined to $2,100,000 which with real estate commission would not be sufficient to cover the principal and interest on the first and second mortgage positions plus outstanding property taxes.
The only other avenue for recovery would have been Mrs. Sharon Rusin, the wife of George Rusin. There was no evidence to suggest Mrs. Rusin held any assets in her own name. The lender leads for the third and fourth mortgage were canvassed to determine if additional monies should be spent on legal fees to pursue Mrs. Rusin. It was decided that no further costs should be incurred, as there appeared to be little, if any, chance of recovering any of the outstanding lenders' funds from this source.
If you have any specific questions concerning the project please contact us in writing at the Price Waterhouse Centre, 601 West Hastings Street, Vancouver, BC, V6B 5A5 or by fax at (604) 688-6128 marked to the attention of Rusin Mortgage - Project Lead.
Yours truly
Judicial Trustee
PricewaterhouseCoopers
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