KEITH WHITCOMB JR.
BENNINGTON -- A property south of town that has hosted car dealerships, and more recently a carbon fiber research facility, will be up for sale at a foreclosure auction at the end of the month.
Route 7 property
The auction will be held Sept. 27 on the property, 811 U.S. Route 7, at 2:30 p.m.
The foreclosure complaint was filed in Vermont Superior Court in December by Carbone Family Realty LP against Michael A. Hernandez. According to Carbone’s attorney, Jim Cormier, of the Bennington law firm Cormier, Cormier, and Munson, Hernandez took out a promissory note from Carbone for $500,000.
The complained alleged that Hernandez had failed to make payments on the note, and as of Nov. 8, 2012, he owed $305,651. That includes interest. The complaint also lists Ford Motor Credit Co. as a defendant, because it granted a second mortgage to Hernandez on the property for $240,000. Ford Motor Credit Co. filed a motion for a cross-claim and had it granted.
Hernandez, who is represented by Bennington attorney John Cohen, did not file an answer to the complaint; however, in early December he did file an agreement to allow Carbone to take possession of the property, secure it, winterize it, and collect whatever rent was due.
Cohen did not return a call to his office Wednesday seeking comment.
Cormier said in an interview that as per the Vermont Superior Court’s decision, his client will be paid first from any proceeds the auction generates. Ford Motor Credit Co. will be paid from what is left. The complained named Nancy Phillips Associates Inc. as a third defendant, claiming Hernandez owed it approximately $30,000, but Cormier said it appears that entity is not seeking funds from the auction.
According to staff at the Bennington Town Office, the property is assessed at $664,000. It has $19,635 in delinquent taxes owed from last year, and this year’s tax bill is $16,958.
The property had been the site of car dealerships since the 1960s. In 2009, Plasan Carbon Composites announced it would be using the facilities there for research and development of carbon fiber materials. About a year later, company representatives said they would be moving most of that division to Michigan because of tax breaks and having it closer to a growing auto industry.
Contact Keith Whitcomb Jr. at firstname.lastname@example.org or follow him on Twitter @KWhitcombjr.