Foreclosures Impede Development Work

One of the biggest condo projects coming up is going to be stalled because of a foreclosure suit. If the case brought against Riviera Southshore by Wells Fargo succeeds then this South Florida dream of 700 units will gather dust thanks to a falling housing market. Similar other projects have met with like fate. 200 house owners are facing foreclosures in this region within the spate of a single month. In the three county regions the place is dotted with abandoned plans and developers gone bankrupt.

Nobody knows how Frank Maggio, the developer will respond to the foreclosure attack coming from the fourth largest bank in the country. But those who are in the know are not hopeful about Maggio being able to survive against the tough contender, considering the state of the market in Florida. Maggio had taken a loan of $22.3 million from the bank and had failed to pay dues. This is the claim made by Wells Fargo. The Mayor of Bradenton, Wayne, is rather surprised that Fargo’s financial position was so weak. In Florida there are many cases of approved projects suddenly coming to a halt. Florida is just one of the many places with the same story to tell right across America.

This Riviera Southshore project had generated much passion and many are going to be disappointed. Maggio and his group First Dartmouth Homes had in the beginning wanted to bring lawsuits against Bradenton for denying the project. It was grudgingly sanctioned in May with many having reservations about increasing density of buildings in Southshore on the river near Old Manatee. Now observers are waiting to see if Maggio will get through or another developer will take over.

An expert opinion blames it on timing. It was the wrong time for the project and the financing was wrong. Maggio had big plans about giving the area a new look with 60 commercial and residential blocs and had fought tooth and nail to get the sanction. From the middle of 2005 he had started arranging the land on the southern banks of the river. The timing was wrong because the boom had just started to taper off. Maggio’s loan of $7.15 million had swelled to $18.5 million by the start of 2006. Many had objected and so there are some glad that the plan ultimately never took off.

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