Housing Project Faces Foreclosure Crisis

by cassy82 | October 14, 2009 at 10:33 am

28 views | 0 Recommendations | add comment

A downtown housing project in North Carolina has become one of the latest victims of the foreclosure crisis. The subdivision was taken over by its lender after its developer missed payments on an almost $6 million loan.

A housing project in downtown Belmont in North Carolina has been taken over by Sun Trust Bank, making the partially-developed subdivision one of the latest victims of the foreclosure crisis.

The subdivision, located at the former Eagle Mill site, was turned over to the bank after its developer, Firmitas Developments defaulted on an almost $6 million loan. When the developer turned over the property to Sun Trust, it turned its back on a development plan that includes a 290-unit subdivision in Eagle Park. The development has no more than 20 percent of lots built out.

According to industry experts, the development company also canceled previous plans for a mixed-use project with 675 units on Cramerton’s Lakewood Golf Course in 2008. Instead, the company chose to sell the property to Gaston County which plans to build a new high school on it.

By Cassiano Travareli