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BOA filed $20 Million Condo Foreclosures Case

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By : John Cutts    99 or more times read
Chicago, Illinois developers MCZ/Centrum Florida XIV LLC are facing a condo foreclosures case at the Circuit Court of Manatee County in Florida. The case was filed by Bank of America (BOA) accusing the developers of defaulting the almost $44.8 million in loans they used to purchase the condominium complex, Serenata Sarasota located in the southern region of Manatee County.

BOA is seeking to repossess 64 condominium units which is a result of the joint venture between MCZ Dev. Corp. and Centrum Properties. Additionally, BOA is requesting for a receiver to be appointed by the court to manage and operate the 240 condominium complex.

According to condominium complex officials, the two developers have actually reached an amicable agreement that they hope would resolve the condo foreclosures lawsuit. They said that the case will not have any adverse consequence on the condominium association nor the sales and closings.

Meanwhile, the Serenata Sarasota lawsuit is the second repossession case filed against the joint venture of MCZ and Centrum in Manatee. Orion Bank and the National City Bank have also filed a foreclosure case against MCZ and Centrum IX LLC last May. The case stems from the venture's $27.1 million delinquent loan with the banks.

The lawsuit is also seeking foreclosure on the 788.2-acre property located at the northern region of Buckeye Road. The plan is for the development of the Curiosity Creek which consists of 150,000-sq ft commercial space and 1,594 houses.

MCZ/Centrum submitted an alternative development plan that includes a residential project in place of a 7 million-sq ft light industrial space.

The company said that the maturity date of its current loan was actually extended while the county is reviewing the alternate development plan. However, the banks decided against giving another extension on the company's loan. They then initiated repossession proceedings due to financial mismanagement.

Industry experts pointed out the growing number of condominiums in the state at risk of foreclosures. They said that increasing condo foreclosures is starting to show some devastating effects on condominium associations and residents. Most often than not, owners of vacant and foreclosed units do not pay their dues, leaving associations with no funds to be used for maintenance and services.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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