Apartment buildings sold for $310,000: Foreclosure sale nets only one bid

The Shawano Leader/October 6, 2011

Two apartment buildings purchased under a land contract by a subsidiary of the Samanta Roy Institute of Science and Technology were sold off Wednesday to a mortgage creditor in a foreclosure sale.

Fox Communities Credit Union, which already had possession of the buildings through receivership, made a bid of $310,000 for the properties at a sheriff's sale held at the Shawano County Courthouse. There were no other bids.

Midwest Properties of Shawano LLC entered into a land contract with Robert and Shannon Broder in 2004, according to court records, agreeing to purchase the apartment buildings at 463 Humphrey Circle and 1024 East Fifth Street in Shawano.

The contract called for a purchase price of $575,000, with a down payment of $100,000. The remaining $475,000 was to be paid in monthly installments of $5,000 with a 6.25 percent annual interest rate.

Fox Communities Credit Union (FCCU) filed suit against the Broders in 2008, naming Midwest Properties as a defendant with a subordinate claim on the apartment properties. The credit union was subsequently granted a default judgment and its legal counsel, the Van Lieshout Law Office, was appointed as receiver.

Midwest Properties has maintained it paid the Broders $5,000 a month for three years under the assumption they were using the money to pay off the mortgage.

In February 2009, FCCU was granted foreclosure, allowing the sale of the apartment buildings, but that sale was also delayed when Midwest Properties filed for bankruptcy.

According to the sheriff's sale notice, about $452,000 was still remaining on the debt.

The properties were previously slated for a sheriff's sale in February before the sale was stalled by a bankruptcy filing.

SIST and its subsidiaries own a number of Shawano area properties and businesses. Several of those properties have been the subject of foreclosure action in Shawano County Circuit Court that has been delayed due to the various bankruptcy filings.

Last week, a foreclosure sale of three Shawano gas stations owned by SIST subsidiary Midwest Oil of Wisconsin LLC was cancelled. They were slated to be sold October 13. Attorneys for the creditor, Integrity First Bank of Wausau, did not comment on the reason, but there were unconfirmed reports that the $1.3 million mortgage had been paid.

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