JANESVILLE — Even though Billy Kesselring has avoided, at least for now, possible utility disconnects on his properties, he might be facing an even bigger problem.
Most, if not all, of the 18 properties Kesselring purchased in spring 2008 are in danger of foreclosure, according to online court records and the previous owners.
Kesselring and his father-in-law, David Tiffany, bought the properties in Janesville, Edgerton and Milton from Ed and Renee Anderson.
They bought nine of them with financing from Wells Fargo Bank. The other nine they bought on land contracts, meaning they make payments to the Andersons and the Andersons' names remain on the titles.
Kesselring said he is about four months behind in payments on all the buildings. Renee Anderson confirmed Kesselring is four months behind on the buildings bought on land contracts.
The Andersons are having their lawyer draw up foreclosure papers on the nine properties still in their names, Renee said. If that happened, ownership would revert to the Andersons.
Wells Fargo Bank has started foreclosure proceedings on at least eight of the nine properties it financed, according to online court records.
Kesselring said the foreclosure proceedings from Wells Fargo are a formality. He is "100 percent certain" he will reach a payment plan with the bank, he said.
"If I would've gotten all the rent due to us for the last six months, we would not be in this situation at all," he said. "I would be break-even on all of our debt. That is 100 percent the fact."
Kesselring said he is owed $110,000 in back rent, or about three months' worth for every tenant. He said he could start to pay his debts if his tenants find jobs and pay rent.
He said he doesn't know what would happen to the tenants if the bank forecloses on the properties. The bank could hire a property manager or find other places for the tenants to live, he said.
But he doesn't think it will come to that. He believes Wells Fargo will be understanding with a payment agreement because it cares about the tenants, he said.
"These are tough times, and tough times call for extraordinary actions," he said.
"For all of us, it's just a matter of pulling through. That's just the bottom line."