Lilac Valley Estates to be sold

The trustee managing the bankruptcy of Financial Resources Mortgage, Inc. (FRM) and CL& M, Inc. will seek authority from the United States Bankruptcy Court on July 13 to sell Lilac Valley Estates, the manufactured housing development located just outside the Laconia bypass, between Province Road and Rte. 106.

The trustee, attorney Steven Notinger of Nashua, requests to sell the property to Amazing Views, LLC for $390,000. The principal of Amazing View LLC is Richard Hassler of Gilford owns the property at the corner of Endicott Street East (Route 3) and White Oaks Road that housed "Surf Coaster" water park.

According to court documents, the Lilac Valley 2007 Real Estate Trust, with funds from CL&M, Inc. purchased the property for $950,000 in March 2007. The beneficiaries of the trust, with equal shares, were Lawrence Baldi III and Susan Farah, the wife of Scott Farah, the principal of FRM, both of who filed for bankruptcy earlier this year. Immediately after the transaction, Baldi, as the trustee of the Lilac Valley 2007 Real Estate Trust, signed for four mortgages on the property, all obtained through FRM and CL&M, totaling $3,255,000.

Lilac Valley Estates was approved for 59 units to be constructed in three phases on a 49-acre tract. But, despite the $3.3-million loaned on the property, apart from installing water, sewer and roads, only three units have been built, two of which are occupied.

The property will be sold free and clear of lien, claims, interests and encumbrances, which amount to about $3.4-milion. The trustee proposes to assign $10,000 of the proceeds to Baldi's estate and $230,000 to the estate of CL&M for distribution to creditors after payment of outstanding property taxes and closing costs.