Two Vero Beach New Home Developments In Foreclosure; Leave Lenders, Subs, Homebuyers In The Lurch

In Vero Beach, Florida, TC Palm reports:

• A 106-home development started during the real estate boom has landed in court, leaving homebuyers and subcontractors out of tens of thousands of dollars. Seacoast National Bank has sued to foreclose on Eagle Trace, a 40-acre subdivision [...] . The lender also is suing developer Mizner Grande of Vero Beach and related companies, and their principals, Richard F. Rendina of Palm Beach Gardens and Stephen Siegel of Boca Raton. Seacoast charges that Mizner Grande failed to repay loans and credit lines totaling $27 million and file timely financial statements and tax returns. The suit, filed late last month, also alleges Mizner failed to resolve $1.2 million in property liens, most filed by subcontractors seeking payment. The bank asked the court to appoint a receiver to manage the property.

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• Mizner Grande has sold 43 of the 57 homes in the first phase of the project nearest 58th Avenue. Several are now built and occupied. Mizner has started only 19 of the 49 homes in the second phase and has sold none, Rendina said.

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• Separately, Rendina and Siegel and their company, San Messina 23 Realty LLC, face foreclosure on a 22-home project, the Enclave, just north of Eagle Trace on 65th Street. Colonial Bank contends in a separate suit filed in August of last year that the developers defaulted on an $8.2 million loan. No homes in that one-street project are finished. Several homebuyers in Eagle Trace have sued Mizner Grande, attempting to recover their deposits. At least three homebuyers have filed complaints against Mizner Grande with the state Attorney General's Office, claiming Mizner refuses to return their money.

For more, see 40-acre new home project in jeopardy in Vero Beach.

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

For other posts on builders & contractors accused of stiffing customers & subcontractors, go here and go here. contractors stiff subs customers zeta