Jurisdiction dispute halts real estate foreclosure

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Manoj and Anant Nischal owed $907,941 on their 144-room Travelodge hotel in Augusta, Ga. Their promissory note, secured by a mortgage on the property, included personal guarantees to assure repayment of the loan. The mortgage lender was Business Loan Center LLC, a New Jersey corporation. Purchase Bob Bruss reports online. The borrowers defaulted on their mortgage. The lender obtained an appraisal showing the hotel's fair market value was $650,000 on the date of the lender's foreclosure sale. No bidders showed up at the nonjudicial foreclosure sale on Dec. 3, 2002, so the lender acquired title to the property. After the sale, on Dec. 30, 2002, the lender filed for a confirmation of the sale with the Georgia Superior Court. The foreclosure sale has not yet been confirmed by the Georgia Superior Court. Meanwhile, Business Loan Center LLC sued the Nischals in U.S. District Court in New Jersey for a $257,941 deficiency judgment on the mortgage ($907,941 owed minus the $650,000 proper...