Default On $131M Note Throws Apartment Buildings In Three States Into Foreclosure; Tenants Face Threats Of Utility Shutoffs, Sewage Seepage

In Portsmouth, Virginia, The Virginian Pilot reports:

• The management of two large Churchland-area apartment complexes has not paid utility bills recently and appears to have abandoned them - prompting a court to appoint a receiver for the properties. The complexes are the 196-unit Chelsea Point, formerly called The Villas, in Portsmouth, and the 208-unit Vacaro Apartments, formerly known as the Woodhaven Apartments, in Chesapeake.

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• Owners S.E. Portfolio Apartments LLC, which is based in Irvine, Calif.; and GTS Property Portfolios B-2 LLC, which has a Midlothian registered office, got a loan on the properties in 2007, the document said. The complexes are among 11 in three states that are security on a nearly $131 million note, it said. It said Bethany Management Group LLC,(1) a related entity, was believed to have "effectively abandoned management" of the sites.

• [One tenant] said she has lived there for a year and that maintenance became worse. Last weekend, she said, the plumbing backed up in her building and flooded the hallway and laundry room.

For more, see Receiver named for Portsmouth apartment complexes.

For other posts involving the problems tenants face in homes in foreclosure, go here, go here, go here, go here, and go here.

(1) Go here for other posts on Bethany Group buildings in foreclosure in Georgia and Arizona. RentSigmaSkimming