Boreyko has asked a federal court to allow the sale of a property he claims is $600,000 underwater, despite a preliminary injunction barring him from selling any real estate. He filed the request on January 13, 2016, citing urgency as the lender and purchaser aim to close the transaction by January 18.
The proposal directly contradicts a court order from a prior proceeding. This order prohibits Boreyko from selling any real estate asset he owns, controls, or holds for his benefit, directly or indirectly. Boreyko’s filing asserts that his interest in the property is significantly underwater, meaning the outstanding mortgage debt exceeds the property's current market value.
He argues it is financially illogical to retain a property that represents a substantial loss and incurs ongoing expenses. Boreyko characterized the proposed transaction as a "short sale." The specific terms of this sale, including the property's valuation and the planned use of any proceeds, were not detailed in his initial proposal.
Boreyko had sought approval for the short sale from the Federal Trade Commission (FTC), submitting supporting documents. He stated that he would file the transaction documents under seal if the court wished to review them. The FTC did not grant its approval for the request. This leaves the decision solely with the court.
Boreyko requested an expedited decision from the court by January 15, 2016, to meet the proposed closing date. The court granted Boreyko's request for the short sale on January 16, 2016. This approval remained contingent on final authorization from Bank of America.