In a recent report of news-press.com, two south Fort Myers men, Bob Mosher and Stan Garczynski, after taking possession of a Cape Coral home they purchased at court auction, the lawyer representing the former owners of the Cape Coral home, Nickie and Jim Haggart, stated that the banks might fight to claim the waterfront property that was in the process of being foreclosed.
The Haggarts were represented by Marshall Cohen. Cohen said that the ordinance that allowed the city to foreclose on a lien and open the home to an auction might be illegal. If it is, its effect on other Cape Coral foreclosures is uncertain.
Cohen said, “It’s a question of how you read the ordinance and link to the (related) Florida statute whether the mortgage companies still have a lien on it. How it’s going to come out, I don’t know.”
After looking through the houses in Cape Coral
, the Haggarts bought the property for $599,000. They also put more than $250,000 into it. Unfortunately, Nickie Haggart stopped making mortgage payments after being hit hard by the recession. Because of non-payment, the bank automatically filed a case to foreclose the Haggarts’ home. While that was pending, Chase Bank, the lender, continued paying the property taxes and home insurance, however, the company ignored a water assessment impact fee. Because of this, the city placed a lien on the property that sum up to $619.58 including unspecified interest, penalties and attorney fees.
The Haggarts’ property was foreclosed on the lien and in January, it went to auction, where Mosher and Garczynski bought it for a cheap price of $4,350. Prior to the real estate market crashed, the 2,991-square-foot Haggarts’ house was listed for $1.2 million. At this time, the Cape Coral home is assessed at $387,906.