Boca Builder Facing Foreclosure; May Leave Dozens Of Stiffed Subs, 30+ Homebuyers Holding The Bag

In Palm Beach County, Florida, the Daily Business Review reports:

• Bank of America is eager to recover $20.5 million it lent to Boca Raton-based developer Sterling Communities to build a luxury community of single-family homes in Lake Worth. [...] Sterling, headed by president Paul W. Asfahl, owes money to numerous subcontractors who worked at Talavera, a community northeast of State Road 7 and Lake Worth Road with 77 single-family homes with starting prices ranging from $700,000 to $1.5 million. The contractors are among 86 defendants named in the lawsuit.

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• At Talavera, Sterling has closed on about 49 homes, according to Palm Beach County public records. [...] Dozens of contractors are named in Bank of America’s suit, including Certified Security Systems, which is owed about $60,000, Florida Builder Appliances, $35,000; Production Plumbing, $41,828; and Dobson Construction Services and Roofing, about $31,000. [...] A subcontractor, who spoke on condition of anonymity, said Sterling paid him for his services but the checks bounced. Several homebuyers who had deposits to purchase Talavera houses are also named in the lawsuit.

For more, see Bank of America files foreclosure suit against builder Sterling Communities.

To view the lawsuit, see Bank of America v. Sterling Communities at Talavera, LLC, et al.

Go here for other posts on builders & contractors accused of stiffing customers & subcontractors. contractors stiff subs customers alpha