Housing Project Faces Foreclosure Crisis
October 14th, 2009 by 
jparker
A housing project in downtown Belmont in North Carolina has been taken over by Sun Trust Bank, making the partially-developed subdivision one of the latest victims of the foreclosure crisis.
The subdivision, located at the former Eagle Mill site, was turned over to the bank after its developer, Firmitas Developments defaulted on an almost $6 million loan. When the developer turned over the property to Sun Trust, it turned its back on a development plan that includes a 290-unit subdivision in Eagle Park. The development has no more than 20 percent of lots built out.
According to industry experts, the development company also canceled previous plans for a mixed-use project with 675 units on Cramerton’s Lakewood Golf Course in 2008. Instead, the company chose to sell the property to Gaston County which plans to build a new high school on it.
At the Eagle Park project, about 34 single family houses and 16 townhomes were not affected by the foreclosure crisis. This is because these properties were completed, sold and still have occupants.
Meanwhile, the J.C.B Urban will start construction work on two lots in Eagle Park. Under the plan, Sun Trust will sell the lots to developers. Industry experts are hoping that improvements in the housing market would propel the development project to become a success. They said that the market is currently very soft and susceptible to both internal and external changes.
The Eagle Park was started in 2004 when former R.L. Stowe Mills Inc. Chief Executive Officer Hardin Stowe sold it to Graham Development Inc. President Tom Graham. On his part, Graham partnered with other individuals to construct and develop a traditional neighborhood enclave in Belmont.
The development project was marketed to employed people in Charlotte during the boom of the housing market from 2006 to 2007. Homes that can be found on Eagle Park come in various prices, including $140,000 for a townhouse and $500,000 for a single-family home. However, since the housing market collapse, houses priced at equal or more than $300,000 are having difficulty finding buyers.
In September, the foreclosure crisis in Gaston County became worst, increasing by 9 percent compared with the previous month and almost 46 percent from the same month last year.
