Aspen's landmark Hotel Jerome faces a foreclosure auction.

Efforts are under way to stave off foreclosure proceedings on Aspen’s Hotel Jerome, which is scheduled to be auctioned off Jan. 27.

That’s according to David Pisor, the CEO of Chicago-based Elysian Worldwide, a joint owner of the Main Street Aspen landmark along with Capital Partners LLC, also of Chicago. The hotel is operated by RockResorts, a division of Vail Resorts.

“Elysian Worldwide LLC and Lodging Capital Partners LLC remain committed to RockResorts management and to the Hotel Jerome. We are currently in discussions with our lenders to avoid foreclosure,” Pisor said in a statement issued to The Aspen Times this week.

Pisor’s statement comes after the Pitkin County Treasurer’s Office started foreclosure proceedings Thursday when it filed a “notice of election and demand for sale.” The notice says that the current owners have an unpaid loan balance of $36.3 million on the property, located at 330 E. Main St.

“It’s business as usual and we intend to manage this hotel even with the change of ownership,” Hotel Jerome general manager Brendan Carlin said.

To Warren Klug, general manager of Aspen Square Condominium Hotel and chair of the board of directors for the Aspen Chamber Resort Association, the Hotel Jerome is part of Aspen’s identity.

“We all know the Hotel Jerome is a real classic in Aspen and has been a foundation of our image for many, many years,” he said “It’s a very wonderful and special property.”

The 92-room hotel has a rich history, from the time it was built in 1889 by Jerome Wheeler. Aspen luminary Walter Paepcke bought and renovated the Jerome in 1946, and it’s where John Wayne, Gary Cooper and other stars of the silver screen, as well as artists, writers and the like, gathered in the 1950s.

A change of ownership would mark the third such exchange for the hotel since 2005, when Oklahoma Publishing Inc., controlled by the Gaylord family, bought it for $33.7 million from Jim McManus.

Oklahoma Publishing sold the property, in 2007, for $52 million to the current owners.

The new owners financed most of the purchase with a $48 million mortgage, or deed of trust, through Morgan Stanley Mortgage Capital Inc., according to public records. The holder of the deed of trust changed at least twice. The current deed holder, Jerome Property LLC, which has offices in Chicago and is incorporated in Delaware, bought the deed from Aurora Bank, an affiliate of Lehman Brothers Holding Inc., on Aug. 31, records show.

Klug said that no matter what happens with the ownership of the Hotel Jerome, “the financial turmoil does not mean it goes away.”

Aspen's landmark Hotel Jerome faces a foreclosure auction.

Sharon Johnson joins Prudential Steamboat in Hayden.

A Colorado native, she started her real estate career in Tucson, Ariz. in 1998. She has previous experience in human resources, financial services and communications. Johnson decided to continue her real estate career when she returned home to Colorado with her husband, Steve, and daughters, Laura and Emma, in 2000.

“Choosing to join the team at Prudential Steamboat Realty was an easy decision for me,” she said. “Their commitment to being the top real estate office in Routt County coupled with their community involvement and support was very appealing for me.”

Johnson volunteers at the Hayden schools and her church and enjoys the outdoor recreation the community offers. She works out of the Prudential office at 151 W. Jefferson in Hayden.

Steamboat Springs is poised to embrace new traditional neighborhood (TND) design zoning for Steamboat 700 (if it’s annexed). Your best chance to visit a TND design neighborhood can be found in the Wellington Neighborhood off French Gulch Road in Breckenridge. Go to Poplarhouse.com for precise directions and to watch a video. Don’t let the intro to the video throw you off — Breckenridge is featured near the start. You’ll see front porches, picket fences and garages off alleyways, as well as interviews describing how the Town of Breckenridge worked with the developer.
I’m not advocating for 700 – you can make up your own mind – only directing you to the parallel universe nearby in another ski town.
Tom Langseth with Slifer, Smith and Frampton in Summit County currently has deed restricted three-bed, two-bath home in Wellington listed for $382, 350.

Edgemont, the luxury condominium project overlooking base of the ski area from high up Ski Trail Lane, is ready for winter now. Construction crews installed asphalt paving in the parking lot and entry roads on Wednesday.

People contemplating a Steamboat ski vacation this winter can receive a 30 percent discount on luxury accommodations at The Porches of Steamboat by joining the resort’s Facebook page.

The Facebook name for the community of large duplex homes off Steamboat Boulevard is The Porches of Steamboat Springs, CO.

The offer was previously available to the general public, but was reserved for Facebook members as of Sept. 1. The current offer continues through Oct. 1.

The internal revenue service reminds first-time homebuyers that the deadline to take advantage for a federal tax credit of $8,000 is 70 days away as of Sept. 20. See the press release below.

Homebuyers they must complete their first-time home purchases before Dec. 1 to qualify for the special first-time homebuyer credit. The American Recovery and Reinvestment Act extended the tax credit, which has provided a tax benefit to more than 1.4 million taxpayers so far.

The credit of up to $8,000 is generally available to homebuyers with qualifying income levels who have never owned a home or have not owned one in the past three years. The IRS has a new YouTube video and other resources that explain the credit in detail.

The IRS encouraged all eligible homebuyers to take advantage of the first-time homebuyer credit but at the same time cautioned taxpayers to avoid schemes that help ineligible people file false claims for the credit. Currently, the agency is investigating a number of cases of potential fraud and is using computer screening tools to identify questionable claims for the credit.

Because the credit is only in effect for a limited time, those considering buying a home must act soon to qualify for the credit. Under the Recovery Act, an eligible home purchase must be completed before Dec. 1, 2009. This means that the last day to close on a home is Nov. 30.

The credit cannot be claimed until after the purchase is completed. For purchases made this year before Dec. 1, taxpayers have the option of claiming the credit on their 2008 returns or waiting until next year and claiming it on their 2009 returns.

For those considering a home purchase this fall, here are some other details about the first-time homebuyer credit:

· The credit is 10 percent of the purchase price of the home, with a maximum available credit of $8,000 for either a single taxpayer or a married couple filing jointly. The limit is $4,000 for a married person filing a separate return. In most cases, the full credit will be available for homes costing $80,000 or more.

· The credit reduces the taxpayer’s tax bill or increases his or her refund, dollar for dollar. Unlike most tax credits, the first-time homebuyer credit is fully refundable. This means that the credit will be paid to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

· Only the purchase of a main home located in the United States qualifies. Vacation homes and rental properties are not eligible.

· A home constructed by the taxpayer only qualifies for the credit if the taxpayer occupies it before Dec. 1, 2009.

· The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on the taxpayer’s modified adjusted gross income (MAGI). MAGI is adjusted gross income plus various amounts excluded from income—for example, certain foreign income. For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the range is $75,000 to $95,000. This means the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less.

· The credit must be repaid if, within three years of purchase, the home ceases to be the taxpayer’s main home. For example, a taxpayer who claims the credit based on a qualifying purchase on Sept. 1, 2009, must repay the full credit if he or she sells the home or converts it to business or rental use at any time before Sept. 1, 2012.

Taxpayers cannot take the credit even if they buy a main home before Dec. 1 if:

· The taxpayer’s income is too large. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.

· The taxpayer buys a home from a close relative. This includes a home purchased from the taxpayer’s spouse, parent, grandparent, child or grandchild.

· The taxpayer owned another main home at any time during the three years prior to the date of purchase. For a married couple filing a joint return, this requirement applies to both spouses. For example, if the taxpayer bought a home on Sept. 1, 2009, the taxpayer cannot take the credit for that home if he or she owned, or had an ownership interest in, another main home at any time from Sept. 2, 2006, through Sept. 1, 2009.

· The taxpayer is a nonresident alien.

For details on claiming the credit, see Form 5405, First-Time Homebuyer

Bruce Carta of Land Title Guarantee Company reports that August unit volume reached 72 transactions, two more than in August 2008. Of the 43 residential sales in August, 26 were for $500,000 or less. In August 2008, 22 of 41 homes closed for less than half a million.