Although the properties are up for foreclosure, Torres said the owners have one year to redeem the properties.
Torres also explained to the board the foreclosure process. “When you get a default judgment, you have to wait three months. After the third month, that’s when you can move an order of judicial sale. You announce it and then you conduct the auction and then the bidding. The bank bids or MPLT bids as a judgment creditor. Accept that auction bid. Ask court to approve it. Once court approves the certificate of sale it becomes ours [MPLT’s] to sell to somebody else or keep and maintain it.”
The board expressed its concern regarding the deterioration of properties going through the foreclosure process.
Torres told the board that MPLT cannot maintain the properties until these fall into its inventory. “Not until you get an order of judicial sale,” he said.
MPLT cannot come in and maintain the properties until it receives a certificate of sale, he added.
The board also discussed updates of loans with its administrator, the Bank of Saipan.
According to a report presented by Marvin Guerrero of the Bank of Saipan, the loan portfolio was $6,225,835.72 as of Jan. 2011.
Total collections were $35,582.73. Of this amount, $4,043.80 went to the Bank of Saipan fee, $30,909.70 to MPLT, and $626.23 to an escrow account.
Based on the report, of the $6,213,392.73 loans as of February 2011, 15 percent or 14 accounts were 1-30 days delinquent; 9 percent or 9 accounts were 61-90 days delinquent; 10 percent or 11 accounts were 91-120 days delinquent, and 11 percent or 11 borrowers were over 121 days delinquent.
61 of the 112 accounts were current with loans amounting to $3,117,438.92.
With the board giving its green light, Torres and loan administrator will proceed to foreclose 20 accounts.
