Another San Diego Complex Linked To Condo Conversion Marketer Deluged By Foreclosures; Investors Left With Ruined Credit

In San Diego, California, The San Diego Union Tribune reports:

• A wave of loan defaults that has swamped a 42-unit Linda Vista condo-conversion project makes it the fourth complex in the county linked to a Bay Area man to be overwhelmed by pending foreclosures. Kearny Mesa Townhomes, at 7555 Linda Vista Road, was converted from apartments by Diamond House Development, a company linked to James McConville of Fremont. About 35 units in the complex are in the process of being taken back by lenders.

• Investors who bought into the Linda Vista complex and have now seen their credit badly damaged described an arrangement similar to the one McConville allegedly used in three condo conversions in North County.(1) The San Diego Union-Tribune reported on those deals earlier this month.

For more, see Linda Vista condos tied to alleged scheme (Fourth local complex drowning in defaults).

See also, Renters become unwitting victims in condominium mortgage scheme.

(1) According to the story, at all four properties, investors with good credit were recruited to take out mortgages to buy units owned or found by McConville. They were to receive a fee, usually $5,000 to $10,000 per unit. McConville would rent out the units and make mortgage payments. In some cases, investors said they were promised that the units would be transferred out of their names within a few months. In other instances, investors expected to share a percentage of the profits when the units sold.