Vista Montana Apartments: A Non Performing Loan??

http://www.insidetucsonbusiness.com/news/loan-auctions-plaza-palomino-five-apartment-complexes/article_06dd27e0-9853-11e0-a48f-001cc4c002e0.html
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Loan auctions: Plaza Palomino, five apartment complexes

COMMERCIAL REAL ESTATE

Posted: Friday, June 17, 2011 5:00 pm | Updated: 12:58 pm, Thu Jun 16, 2011.

Loan auctions: Plaza Palomino, five apartment complexes 0 comments

Loans to acquire the Plaza Palomino retail and office complex and five apartment complexes will go up for auction June 27-29 in an online auction to be run by

Auction.com. Rick Weinberg, vice president ofAuction.com, said his firm is hired by financial institutions holding non-performing loans, those on which payments have not been made for at least three months, in an attempt to try to recoup some of the money they are owed.

While in most cases, a non-performing note is somewhere in the foreclosure process, formal legal action has not been taken in any of these cases. Winning bidders in the online auction do not take title of the properties but then must work with the loan holder regarding future mortgage payments.
The 6.3-acre, seven-building Plaza Palomino, 2910-2990 N. Swan Road, has a non-performing loan balance of $9.9 million. The starting bid in auction is $2.5 million. The 98,000 square-foot center was built in 1985.
The five apartment properties have a total of 881 units in 53 buildings on 24.8 acres of land. The portfolio has an outstanding balance on its non-performing loans of $29.9 million and the starting bid is $4.5 million.
The five properties are:
• Canyon Pointe/Los Altos Apartments, 2525 N. Los Altos Ave., 249 units.
• Greentree Apartments, 5555 E. 14th St., 120 units.
• Pueblo Villas Apartments, 520 W. Prince Road, 161 units.
• Vista Montana Apartments, 734 E. Roger Road, 112 units.
• Westgate Park, 1700 W. Prince Road, 239 units.
The apartment loans are all cross-collateralized and transferable to a new mortgage servicer.