Florida Builder Countersues Lender In Foreclosure Action; Subs, Prospective Homebuyers Still Holding The Bag

In Vero Beach, Florida, TC Palm reports:

• Seacoast National Bank and its Indian River County president, Jay W. Hart, are to blame for leaving homebuyers and contractors in the Eagle Trace subdivision out hundreds of thousands of dollars, according to documents filed in circuit court this week. In a countersuit against Seacoast and Hart, Mizner Grande of Vero Beach claims the bank breached its duty as a lender in a “willful and wanton” manner when it stopped loaning money on the 106-home development [...]. Seacoast acted in December to foreclose on the 40-acre subdivision, claiming the developer failed to repay loans and credit lines.

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• According to the suit, Hart and former attorney Ira C. Hatch Jr., who represented Seacoast in loan negotiations, made false promises to Mizner Grande [...]

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• Hatch, who is not a defendant in the suit, sits in Indian River County Jail in lieu of $3 million bail on 55 criminal counts ranging from money laundering to racketeering in connection with his defunct company, Coastal Escrow Services, and former law firm Hatch & Doty. [...] None of the charges are related to Eagle Trace.

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• Meanwhile, several homebuyers in Eagle Trace have sued Mizner Grande for their deposits and have filed complaints with state regulators. Subcontractors also have sued Mizner Grande seeking payment for work performed in the development. Several companies have filed liens against the property totaling $1.2 million.

For more, see Lawsuit alleges bank breached its duty, made false promises in Indian River County.

For earlier Jan.31 TC Palm report on this story, see 40-acre new home project in jeopardy in Vero Beach.