The Atlantic Springs Condominium is in danger of being placed on Florida foreclosure listings following the filing of a foreclosure lawsuit by the lending company, Citigroup Global Markets Realty Corp.
About 152 unsold condominiums in Coral Springs-based Atlantic Springs Condominium will go into foreclosures if the project's developers Prestige Builders Group and Lake Coral Springs 377 Delaware could not convince Citigroup to withdraw the foreclosure action it filed before the Broward County Circuit Court.
The Citigroup foreclosure case is the fourth lawsuit filed against Lake Coral Springs. According to court records, Lake Coral Springs acquired the apartment complex in 2005 for about $73 million. It then obtained a loan amounting to $66.2 million from lender, Citigroup.
The developer converted the 21 apartment buildings into condominiums and proceeded to sell about 240 units from 2006 to 2008.
Meanwhile, some projects of Prestige Builders Partners are also at risk of being placed on Florida foreclosure listings, including the unfinished Kendall Commons and the Olivine condominium conversion in Pinecrest.
The increasing number of foreclosure properties in the commercial real estate in Florida has caused alarm to some industry experts who are worried that the market would mirror what has happened in the residential real estate.
Last month, Florida ranked second among states with the highest foreclosure activity. According to market data, foreclosure filings surged to record high in both counties of Broward and Palm Beach.
In Palm Beach, around 4,150 distressed homeowners were in some kind of foreclosure process in August, twice the number from the previous year. In Broward, the number of homeowners at risk of foreclosures reached 10,165, an increase of 43 percent from the same month the previous year. Broward ranked second among counties in Florida in terms of high foreclosure rate.
Industry analysts said that adjustable-rate mortgages drove the foreclosure numbers to the ceiling, resulting to the collapse of the housing market. But this time, analysts said that the foreclosure increase is brought about by the growing unemployment rate.
And adding to the woes of Florida homeowners is the scheduled resetting of adjustable-rate mortgages. Industry analysts said that the increase in the number of foreclosure houses in Florida indicated that federal, state and local programs designed to prevent foreclosures are not enough to abate the crisis.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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