Thirty-eight lots and a 2.9-acre parcel with a small house were sold recently at a trustee's sale at Lake Linganore near Frederick, Md. The 4,000 acre, recreational and residential commnunity was started in 1970 by William and Louie Brosius, who later went bankrupt.
A. J. (Jack) Billig, who conducted the public auction for Merritt Birch, of Baltimore, the trustee, said that the sale brought a total of $93,300 from 15 purchasers. He said some of the smaller, undeveloped lots sold for $800.
William Brosius said in an interview that he and his brother have been "out of it (Lake Linganore) for months." In 1977, First Mortgage Investors, a real estate investment trust in Miami, foreclosed on the $6 million in loans it made to the Linganore Corp. in 1971.
Ronald Hermes, manager for Phoenix Property Inc., a FMI subsidiary, said that he is assigned to Lake Linganore to manage the 2,400 acres of undeveloped land as well as the facilities, on which FMI instituted foreclosure proceedings several years ago.
Hermes said that the golf course built by Brosius is still operating as a private country club, with 380 golfing members. An official has also been set up by the Lake Linganore Association which represents the owners of 1,565 lots.
Since the first few homes were built at Linganore in 1973, only about 50 more have been constructed. Most of the lots were purchased during a period in which the land decelopers mounted a strong sales campaign.
Some of the lots, most of which are less than a quarter of an acre, sold for more than $10,000.
The Brosius brothers built a lake and roads and installed a water service and some sewer and sewage treatment facilities at the development, but Hermes said those facilities do not serve all the areas where lots have been purchased. He said another investment in those public services would be necessary to serve tha entire area.
Hermes also said that Phoenix has been seeking another developer to purchase and continue the development. So far, none has been found.
Although he was reluctant to speculate, Hermes said that Phoenix will continue to look at prospects for the property it owns and probably decide next year on whether to undertake the continuation itself if no qualified purchase turns up.
Regaredd by many in real estates as a prime assemblage of rural property, Lake Linganore was designed originally to appeal both to permanent residents and to vacation-home buyers.
However, the real estate and mortgage money crunch of 1974 affected sales at Linganore - as well as the financial stability of both the developers and the lender. As a realty investment trust, FMI endured a rough period in 1974, 1975 and 1978.
"Not much is happening here now," Hermes said. "We are not presently selling lots, but the facilities are being operated by the community association and the golf course seems to be doing well."