Struggling Developer Files Bankruptcy As Opportunistic Competitor Acquires Delinquent Mortgage & Seeks Foreclosure On Unfinished Townhouse Project

In Deland, Florida, the Daytona Beach News Journal reports:

• The struggling developer of Carriage Homes, a planned [74 unit] luxury town-house project with just 11 units built -- and only two sold -- sought bankruptcy protection from creditors Tuesday, averting a foreclosure sale scheduled for hours later. [...] Only one unit is occupied, as a rental. Adjacent lots in the gated development are overgrown with weeds and littered with trash.

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• Another developer, Bob Horian, president of Suncor Properties, said he held the lien on the property and was seeking foreclosure in hopes of completing the project himself. Suncor had acquired the security on the project from Colonial Bank and in March won a $3.4 million foreclosure judgment against it. Horian said he had expected to take possession of the property in a proceeding scheduled for Tuesday.

For more, see Foreclosures foiling future? (Carriage Homes seeks protection) (media report no longer available online).