ATTEMPTED "SHORT SALE" OF SHERMAN PARK, AN INDUSTRIAL COMPLEX, FAILS
December 12, 2006
An unidentified lender has sued to foreclose on a 1.2 million square foot industrial complex on the east side of Indy. Here's a link to the IBJ story. A local industrial park property manager, Larry Harshman, has been named receiver. Interestingly, he's quoted as not having been contacted before being appointed. It's been my experience that lenders essentially will line up a receiver in advance, get the borrower's blessing and then ask the court to appoint the lender's specific choice. The statute doesn't require this, however.
Also of note is that the lender and borrower tried to avoid formal foreclosure proceedings by putting the property up for auction, which evidently failed to generate a sizable enough offer to satisfy the lender, the borrower, or both. This attempted pre-foreclosure transaction sometimes is labeled a "short sale" and is designed, in part, to save time and expense. Needless to say, a short sale avoids a judicial (sheriff's) sale of the collateral.