On Wednesday, Regions bank named Regency Homes in a lawsuit. This won’t end well. They are bringing the hammer down. The lawsuit went on to mention that Regency Homes defaulted on a (get ready for this)… $15 Million loan. To be specific, they owe $9.6 million on a $15 million loan. This lawsuit was prompted by the company (Regency Homes) not providing year end financial statements and requested budgets for homes that are under construction. These requirements aren’t out of the norm for loans such as these. This is the basics of a commercial loan. Regency just couldn’t fulfill their obligations.
Regions bank seeks to foreclose on 83 pieces of property that are located over 5 counties. Scary stuff.
More to come in the future, but for now – brace yourself for the dog and pony show. I bet the rest of the lenders come out of the woodwork very quickly.
For those of you that may be wondering what happens next… The foreclosure process will take months. If you’re looking for an investment opportunity, just hold on. If you’re involved in the purchase of a Regency property – just bang your head up against the wall. It just got much harder. If you need some advice, get in touch with me. I’d be happy to help.
Source: Des Moines Register Original
Article by Donnelle Eller and Tom Witosky
Photo Kudos: Flickr
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Regency Homes will not be the last builder to be sued. But you have to wonder how Regions bank could low it so badly… 83 foreclosures.