By Bennett Hall
Albany Democrat-Herald | Posted: Tuesday, November 4, 2008 12:00 am
Lebanon 'red door' rental house reverts to lender in foreclosure auction
No one showed up at the Linn County Courthouse this morning to bid in the foreclosure sale of the house at 895 N. Oak St. in Lebanon, owned by Michelle Schoning.
But auctioneer Gary Treagesser went through the motions anyway, officially turning the property back to the lender for the minimum bid.
"$69,399.69 going once," Treagesser pronounced to the empty courthouse lobby. "$69,399.69 going twice. Third and final call. This property is sold to the beneficiary for $69,399.69."
Michelle Schoning and her husband, Kip, own more than 150 rental properties around the mid-valley, most of them with their front doors painted red. As previously reported, they and their Corvallis property management company, Bula Enterprises, have been the target of numerous complaints regarding dilapidated conditions, foot-dragging on repairs and excessive fees.
This morning's auction was only the latest sign that their red door rental empire may be coming apart.
So far this year, the couple have defaulted on 79 properties in Linn, Benton, Marion and Polk counties in 2008, according to county records, and another 40-plus are still in default because of missed mortgage payments.
Those properties could all be sold at auction to satisfy the debt. In most cases, that would mean an eviction notice for the tenants.
The Oak Street house is at least the 20th Schoning property to be lost to foreclosure this year, according to a records search.
Another house owned by Michelle Schoning, this one at 1327 Elm St. S.W. in Albany, was scheduled to be auctioned at the Linn County Courthouse this morning, but that sale was postponed until Dec. 19.
Michelle Schoning did not immediately return a phone message left at her Corvallis real estate office this morning.
Bennett Hall can be reached at 758-9529 or bennett.hall@lee.net.