Morgan Resort Goes to June 20 Auction Block
As seasonal campers return to the recreational vehicle park at York Beach in York, Maine, the foreclosure sale of Flagg’s RV Resort is still planned, now scheduled for 9 a.m. June 20, according to an attorney for the mortgage company, seacoastonline.com reported.
“The foreclosure sale is going forward,” said Alan Mills, of Indianapolis, Ind., an attorney representing mortgage holder MLCFC 2007-9 ACR Master SPE, a Delaware limited liability company.
Mills said he believed the sale would be on site at 68 Garrison Ave.
The sale originally was scheduled to take place March 22.
The day before the scheduled foreclosure, Flagg’s RV Resort LLC obtained a 60-day emergency restraining order in York County Superior Court to temporarily stop the sale, according to court records.
Attorneys in the case spoke with a superior court judge via a conference call the week of May 27, according to Mills.
Neither Mills nor Flagg’s attorney David Pierson of Eaton Peabody in Portland said he could comment on what took place during the conference call.
On Wednesday (June 5), long grass could be seen growing in the park, which has lost numerous seasonal campers amid changes there over the past two years.
In York, the day after the scheduled auction in March, workers at the park who said they worked for Morgan were disassembling and moving to an undisclosed location an estimated half-dozen “park models” — cottage-like recreational vehicles.
When the six park models were originally moved in two years ago, an estimated 10 RV campers were told to move out.
Other campers, fearful of the change, moved out of their own accord. Where once there had been more than 80 RVs at Flagg’s, now about a dozen remain.
Flagg’s has a value of $1.2 million, according to the town’s assessing database, available online at www.yorkmaine.org.
In 2007, it was among seven campgrounds Morgan used as collateral toward a $38 million loan from Countrywide Commercial Real Estate Finance Inc., according to court records.
The Countrywide loan was transferred several times.
The mortgage holder sought to foreclose on all the properties, according to the published notice of the sale.
Morgan Recreation Vacations sought to stop not only of the foreclosure on Flagg’s RV Resort, but also on two other Maine properties in Rockport, Megunticook RV Resort LLC and Camden Hills RV Resort LLC, according to the Bangor Daily News.
Morgan was unsuccessful in its request for an emergency restraining order in the Rockport cases. On March 21, the day the Knox County Superior Court denied the requests, the foreclosure sales went forward.
However, the mortgage holder ended up keeping the properties when it did not receive what it considered to be suitable prices, according to the Bangor paper.