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Single Family Houses: Not the Only Properties Facing Foreclosure in IN

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By : John Cutts    99 or more times read
When the foreclosure crisis started around four years ago, single family houses comprised the highest percentage of distressed property totals in most U.S. areas. The impact of the crisis on the commercial real estate market was a bit delayed, with foreclosures in the commercial industry starting almost two years after the problem hit the residential property market.

Indianapolis foreclosure lists have added a handful of commercial properties in the past two years and another one might be joining the list. Recently, German American Capital Corp. has filed a foreclosure request against Castleton Plaza, a shopping center owned by Broadbent Co. subsidiary Castleton Plaza LP.

The request to include the property in foreclosure listings in Indiana was made by German American because of a reported $9.5 million loan that it provided to Castleton. According to the lender, it owes around $8.7 million from the balance of the loan provided to Castleton. The loan was reportedly issued on August 2000. German American is also seeking more than $1 million of interest and some other fees that will bring the total to around $10 million.

The Castleton case is just one of the many foreclosure cases being considered in Indianapolis courts, with majority accounted for by single family houses and some other types of residential properties. Lawyers for Broadbent have stated, however, that the shopping center owner is currently in talks with the lender to come up with an alternative agreement that will prevent the property from getting foreclosed.

Castleton Plaza is one of the biggest shopping complexes in the city of Indianapolis and its foreclosure will significantly impact the real estate market of the metro area, which is already dealing with a handful of properties under lists of foreclosed homes for sale. Local realtors have stated that the problem facing the Plaza is mainly due to difficulties in attracting tenants and maintaining a low vacancy rate.

Although the number of foreclosed single family houses and commercial structures in Indianapolis is relatively low compared with other U.S. cities, officials are still hoping that an agreement will be made between Castleton and its lenders to prevent another foreclosure in the metro area.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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