Monday, May 24, 2010

Judge Approves Kelly G Rogers Bankruptcy

The Honorable Brenda T. Rhoades, United States Bankruptcy Judge, approved the Kelly G Rogers Chapter 11 plan on April 28th, 2010. Download the final order for case 09-42154-BTR-11.

To Summarize

Kelly Rogers has until July 31st, 2010 to sell his home and payoff The BANK OF TEXAS ($1,728,278) and THE THOMPSON CREDITORS ($180,000). If the home does not sell, the Bank of Texas can foreclose on Rogers. Kelly Rogers claims enough equity exists in his home to pay off the Class 3 ($1,908,278) and Class 4 ($105,000) creditors or $2,013,278. In the event the Bank forecloses on Rogers and the subsequent sale does not satisfy the class 3 & 4 claims, they would then be dumped into the "Unsecured Creditor Class 7" and would split a pool of $6,500 per month paid by Rogers over the next 60 months, or $390,000 on a pro-rata basis.

So, let's look at reality. Rogers needs to sell his home for a minimum of $2,013,278 to meet the class 3 & 4 amounts. The home is currently listed at $2,249,999 and it's been on the market for at least 301 days that we know of, since discovered on July 27th, 2009. The home was offered back then for $3,250,000. By the way, how is it that Zillo only shows the home listed for only 59 days? And here's another one; Rogers originally listed his home as 10,675 square feet as compared to the neighbors 12,249. However, the NEW listing says 11,826! Did they recently add another 1,151 feet or just didn't notice it before?

The home at 7 Riva Ridge has been on the market for 486 days and is currently offered at $2,399,900. However, Zillo estimated this property is worth $1,896,500 or 21% lower that the current list price. Obviously, this home is overpriced for the market...based on 486 days on Zillo. At this discount rate, Rogers would need to sell his home for $1,777,499 or 21% lower to move it. As of this writing, we have no way of knowing if a contract is pending but Jan Richey would change the status from "Active" to "Sale Pending" if an offer had been accepted.

Conclusion

Rogers originally filed bankruptcy in July of 2009 and listed his total monthly income as $23,759 per month and $31,750 for Carrie Sewell Rogers. If Rogers loses his home and his $4.6 Million in debt and exchanges it for $390,000, paid over 60 months, thus walking away with a monthly income of $55,509... is that a trade off you'd make? In a New York Second!

Hardly seems fair to those who lost major money in the Rogers/Weyand business schemes. Oh well...on to the indictment for some type of justice.

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