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Multi Family Homes Project Facing Foreclosure
November 6th, 2009 by 
Joseph Smith
Mortgage lender Tissa Funding Corp. has filed a foreclosure on a Winsted, Connecticut-based multi family homes project of Anthony Silano, a developer of Winchester Estates. According to filings at the Litchfield County Superior Court, five properties under the ownership of Winchester Highland Ridge and Winchester Estates LLC are facing foreclosure threat. Silano is named as the owner of both companies.
Tissa said that the companies failed to pay the mortgage for their $4 million loan. The properties located at 210 Torrington Road, 115 Torrington Road, 193 Torrington Road, 214 Torrington Road and 331 Phelps Road were used as collateral in a 2007 deal which named more than 20 guarantors, including Silano’s attorney Ralph Crozier and Aurora Rosa, his business partner.
The multi family homes project is said to be the biggest in the real estate development history of Winsted. The project includes development of 455 adult subdivision units, 225 condominium units and a 641-acred golf course.
The Winsted Planning and Zoning Commission approved the development project which was planned in two phases, sometime in 2006 and 2008. The work has already started in the area planned for a subdivision.
According to industry experts, both Winchester Highland Ridge and Winchester Estates LLC owed unpaid taxes amounting to $10,894, plus interest. Both companies’ taxes were unpaid since 2006.
Meanwhile, Pension Services has filed a lawsuit against Winchester Estates for payments exceeding $340,000. Pension Services said that Winchester Estates had defaulted on its mortgage. Additionally, TD Bank also filed a breach of contract lawsuit against Silano after he allegedly issued a bad check. The bank is demanding payment of $105,000.
Industry experts said many real estate development projects are going into foreclosures. What is happening in Connecticut is mirrored across the country as foreclosure rates continued to soar. Many development projects are vacant or halfway constructed.
Experts said that lenders are refusing to provide refinancing to many developers because they are unsure about the current market situation and they do not want to risk putting their money on an unstable market. Many of them would approve to restructure troubled loans only if developers would be able to provide new cash infusion on their projects.
Additionally, multi family homes developers are hesitant to take more risks on the housing market as home prices and values continued to drop drastically.
