Realtor's properties revert to AEA
A number of properties owned by Realtor Todd Burch were in a trustee sale Thursday morning on the Yuma County Courthouse steps.
As there were no bidders, all the properties reverted to the beneficiary: AEA Federal Credit Union.
However, Burch has filed a lis pendens on all the properties because he has a pending $34 million lawsuit against AEA.
Lis pendens is a notice filed in the office of land records by the plaintiff that the ownership of real property is the subject of a legal controversy, according to the Internet. This notice secures a plaintiff's claim on the property so that the sale, mortgage or encumbrance of the property will not diminish plaintiff's rights to the property, should plaintiff prevail in its case.
Burch had financed his development projects through AEA.
He filed for bankruptcy in the spring of 2010. That includes his personal bankruptcy as well as his entities, Tuscan Ranch Inc., Cactus West Developers, Todd Burch Limited (his business) and Nflux LLC. Nflux owned the building that consists of the Reflections condominiums, some of which are used for assisted living residents.
Last fall, Burch filed his lawsuit, saying he was forced into bankruptcy when the credit union sued him for collection of his capitalized loan and cut off his line of credit. These actions also impacted his ability to do business as the developer of the Tuscan Ranch housing subdivision and the Reflections condominium project, Burch contends.
Shortly after he filed his lawsuit, AEA pursued foreclosure.
The properties in Thursday's trustee sale included three homes, the Reflections condominiums and vacant land.
A number of people attended, including a few interested in bidding on the houses. But when they learned the amounts of the opening bids, they withdrew their deposit checks.
The opening bid was $188,000 for a rental home at 2967 S. 47th Ave. in Barkley Ranch, $233,044 for an unfinished house at 15747 Via Cortile in Tuscan Ranch and $221,457 for an unfinished house at 15732 Via Cortile in Tuscan Ranch.
In addition, the opening bid was $1.47 million for the remaining lots at Tuscan Ranch as well as farmland for future development.
Joyce Lobeck can be reached at firstname.lastname@example.org or 539-6853. Find her on Facebook at www.facebook.com/YSJoyceLobeck or on Twitter at @YSJoyceLobeck.