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Original Message:
Re: bankruptcy (by Doug P.):
This is a responce on the BBB website that, IMO, says it all. The responce is a complaint filed due to never receiving a deed.
"Southwind ManagementCorp ("SMC") is the Managing AGent for the French Quarter Condominium II Owners Association, Inc. ("Association"). French Quarter Group, LLC ("Developer), the orignial Developer of the Resort has filed Chapter 7 bankruptcy. There is a purchase money mortgage on this property that must be paid and satisfied. This is being handled through the Bankruptcy Trustee and Bankruptcy Court. Our hope is that after it is resolved and a Satisfaction/Release filed, owners will receive their Deeds. The Developer is no longer involved in the Resort."
At this point, since the original developer has filed bankruptcy and since it's the orignal developer who is on the contract, nothing will happen until after the bankruptcy has been settled. Southwind is ONLY the managing company higher by our homeowners assoc. to run the resort after the original developer, who was also managing the resort, went out of business.
IMHO, while not perfect, we are in better management hands with Southwind than we were with French Quarter LLC. The problem is, Southwind can't do anything for French Quarter owners as they are not the ones who are on the contract. Since the French Quarter LLC is now bankrupt, legal remedy to the situation is restrict by bankruptcy laws.
I believe the best we can do is to hang on until the bankruptcy filing is settled. Only then will owners know their legal standing. The other option is to retain and atrorny to represent owners interest in the bankruptcy hearing. For me, the cost would outweigh any potential benefit.
We might not like it but, since the original developer filed bankruptcy there is little to nothing to do but wait.
Southwind is not the bad guy in this picture. Since our resort developer has left us high and dry, they have little option but to await the outcome of the bankruptcy filing.
The questions I have are: how long will the bankruptcy go on until settled and why doesn't our HOA keep owners informed?
The worst case scenario is the resort is disolved and owners lose any interest they have in the property. I'm pretty certain we would be considered unsecured creditors. The resort could be liquidated with the owners receiving some of the proceeds but, my bet is the outstanding debts would be enough that owners would receive nothing.
Another option is a different management company could come in and buy the resort out of bankruptcy. They would then have the rights to sell any unsold inventory and develope any additional building/units and sell them. I don't see that happening since FQ was largely sold out and there would be no profit in it.
The most likely option is the bankruptcy is settled, the HOA selects a management company and life goes on. With luck owners will get deeds once the bankruptcy is settled.
To be honest, I know where my contracts are but, I don't recall if we ever recieved a deed to our unit. In the end, it doesn't matter to us as we plan to continue to use our ownership. It would become an issue only if we wanted to sell our unit as we couldn't get clear title thanks to French Quarter LLC going bankrupt.
It's not Southwind that's doing this to owners. It's the fact French Quarter LLC didn't honor it's obligations and has not filed for bankruptcy protection. Until we come out on the other side of the bankruptcy, we have little to no option but to wait.