The house at 552 Sunnyside Drive is owned by Kevin R. and Catherine C. Orr. The house is subject to mortgages in favor of PNC Bank and Fifth Third Bank. We understand that the total amount of the mortgage debt exceeds the value of the house. In 2002, the Orrs defaulted on their mortgages. PNC filed a lawsuit in state court to foreclose its mortgage, and the judge granted a summary judgment in favor of PNC with regard to its mortgage. Fifth Third, at that time, did not object to PNC?’s motion for summary judgment, or ask the court to set it aside. The state court ordered the sale of the property, and a date was set for the sale. However, the Orrs filed a petition for bankruptcy in federal court, and under federal law this filing had the effect of stopping the state court sale.
In July 2003, the federal bankruptcy court issued an order permitting the sale of the house under state law. PNC filed a motion in state court to enforce its summary judgment and to reschedule the sale. However, Fifth Third filed a motion to vacate the summary judgment on the grounds that Fifth Third?’s mortgage was entitled to priority over PNC?’s mortgage. The state court granted PNC?’s motion and ordered the house to be sold. However, Fifth Third appealed this order to the Kentucky Court of Appeals. This appeal was ultimately dismissed by the Court of Appeals, because it was not timely filed.
After the case was sent back to the trial court by the Court of Appeals, Fifth Third filed another motion in the trial court asking the court to rule that Fifth Third?’s mortgage has priority over PNC?’s mortgage. This motion was filed in late 2006 or early 2007. The judge referred this motion to the Jefferson Circuit Court Commissioner for a recommendation. The Commissioner prepared a report to the judge which recommended that the judge determine that PNC?’s mortgage did not have priority, because the original trial court order granting summary judgment to PNC only had the effect of requiring the house to be sold, it did not establish priority. PNC filed objections to the Commissioner?’s report, stating that PNC believes that the original summary judgment did establish priority, because it is not possible to have a court-ordered sale unless priority has been established. As of October 2007, these questions were still pending before Judge Martin McDonald for a decision.
In late October 2007, the Trustees were contacted by the law office of Henry Schildknecht, Jr. regarding the liens that the Trustees have filed on the house due to the Orrs?’ unpaid assessments. The caller stated that Schildknecht wanted to know the amount of the liens because he was scheduling a closing for the sale of the house. The Trustees provided the reqyested information to the caller. The caller refused to provide any additional information about the sale of the house, and the Trustees have not been able to obtain any additional information as of this date.
November 6, 2007
In July 2003, the federal bankruptcy court issued an order permitting the sale of the house under state law. PNC filed a motion in state court to enforce its summary judgment and to reschedule the sale. However, Fifth Third filed a motion to vacate the summary judgment on the grounds that Fifth Third?’s mortgage was entitled to priority over PNC?’s mortgage. The state court granted PNC?’s motion and ordered the house to be sold. However, Fifth Third appealed this order to the Kentucky Court of Appeals. This appeal was ultimately dismissed by the Court of Appeals, because it was not timely filed.
After the case was sent back to the trial court by the Court of Appeals, Fifth Third filed another motion in the trial court asking the court to rule that Fifth Third?’s mortgage has priority over PNC?’s mortgage. This motion was filed in late 2006 or early 2007. The judge referred this motion to the Jefferson Circuit Court Commissioner for a recommendation. The Commissioner prepared a report to the judge which recommended that the judge determine that PNC?’s mortgage did not have priority, because the original trial court order granting summary judgment to PNC only had the effect of requiring the house to be sold, it did not establish priority. PNC filed objections to the Commissioner?’s report, stating that PNC believes that the original summary judgment did establish priority, because it is not possible to have a court-ordered sale unless priority has been established. As of October 2007, these questions were still pending before Judge Martin McDonald for a decision.
In late October 2007, the Trustees were contacted by the law office of Henry Schildknecht, Jr. regarding the liens that the Trustees have filed on the house due to the Orrs?’ unpaid assessments. The caller stated that Schildknecht wanted to know the amount of the liens because he was scheduling a closing for the sale of the house. The Trustees provided the reqyested information to the caller. The caller refused to provide any additional information about the sale of the house, and the Trustees have not been able to obtain any additional information as of this date.
November 6, 2007
