Builder Stiffs Bank, Subcontractor, Leaving 38 Homeowners In Pittsburgh-Area Development Facing Foreclosure

In Allegheny County, Pennsylvania, KDKA-TV Channel 2 reports on 38 homneowners in one development who face foreclosure despite all having paid their mortgage and real estate tax payments:

• [M]ore than three dozen condos in West Deer are up for sheriff's sale at no fault of the owners. The condos at the Hunt Club development are worth more than $180,000 each. [...] The problem lies with the condo developer - Links Development Company of Murrysville.

• A few months ago, Links defaulted on a loan from National City for $2.5 million forcing all of the land in the subdivision into foreclosure. On top of that, the developer owes Richland Properties another $1 million for the landscaping the property. Since Richland hasn't been paid, it's bringing all of the condo owners to sheriff's sale where the condos will be offered to the highest bidder. [...] The company also has dozens actions filed against them in civil court for non-payments of debts and taxes.

For more, see Developer's Debt Pushes Condos To Sheriff's Sale (Condo Owners Paid Mortgages, Taxes; Developer Defaulted On Loan, Landscaping Bill) (read story) (watch video).

See also Pittsbugh Tribune Review: West Deer condo owners may lose homes.

For story updates, see:

• (4-11-08) West Deer sheriff sale delayed (Judge Timothy Patrick O'Reilly this week ordered that the planned June 2 sheriff's sale of 38 condos at The Hunt Club at Grandview Estates be delayed until Oct. 6),
• (4-7-08) Task Force To Probe West Deer Condo Developer (The matter has been turned over to the US Attorney's Mortgage Fraud Task Force )

For other posts on homeowners left in the lurch due to actions by builders/contractors, go here and go here. contractors stiff subs customers zeta