Liquidating Real Estate and Vehicles without a Lien

Liquidating Real Estate and Vehicles without a Lien
September 18, 2024
By Bob Coleman, Publisher & Founder

 As Kris Roglieri sits in a county jail due to his revoked bond in his multi-million dollar upcoming fraud trial, a federal bankruptcy trustee is attempting to liquidate his assets. 

This Saturday, a number of Roglieri’s cars will be auctioned by the Saratoga County Museum. The Museum is particularly interested in the sale of an F12 N-Largo Ferrari, which is only one of 14 in the world.

The bankruptcy court will sort out secured creditors’ claims, and after auction fees and expenses, we will see what is left over. However, the largest asset of Kris’s is his home that he owns in Queensbury, New York, on 14 acres of land.

Kris purchased the French Gothic-style home in 2013 for $920,000 from a prominent longtime family of the area. During a bankruptcy court hearing last week, a realtor specializing in high-end properties guessed the house would list at $1.9 million and perhaps fetch $1.6 million.

KeyBank holds the first mortgage, and a second position line of credit brings the total amount of the first two liens to $900,000. However, there is bad news for unsecured creditors.

The state of New York has a $488,000 tax lien against the property. Additionally, a landscaper has filed a mechanic’s lien of nearly $50,000 for work on the property that has not been paid. A mechanic’s lien is a legal claim against a property that allows a contractor, subcontractor, laborer, or material supplier to seek payment for unpaid work. The lien can be filed with the County Recorder without litigation.

Broker and sales fees, as well as preservation of collateral expenses, will probably eat up the balance of any remaining cash proceeds. 

The takeaway is that a lender in an unsecured position cannot assume a sale of real estate will only be applied to financing liens.

Source: Federal Bankruptcy Court Documents