College towns are filling up with students as summer ends and the new school year begins. However, some college students in Tennessee may be looking for a new place to live due to the pending foreclosure of a large apartment complex.
The company — DHD Ventures — is already the subject of foreclosure proceedings in another state. Now, its Monarch 815 apartment complex is the subject of foreclosure proceedings, as the company is currently over 90 days past due on its $31.9 million loan for that property. The property is located in Johnson City, Tennessee, and is meant to serve those attending East Tennessee State University.
The last payment the developer made on the Monarch 815 property was back in March and almost $537,000 is currently past due. Moreover, the property has also received citations for various “life safety issues,” including damaged emergency exit signs and trip hazards on the flooring in public areas. Therefore, in June, the loan was turned over to a special servicer in an attempt to collect on the defaulted loan. That company instituted foreclosure proceedings in July.
When a commercial real estate owner is facing foreclosure, it is usually because they are in financial trouble. However, foreclosure is a legal proceeding and there may be ways to stall it or even stop it altogether. The foreclosure process varies based on state law, but, generally, there is a certain amount of time a property owner must be overdue before foreclosure proceedings can begin. Also, the lender generally needs to secure a court order before a foreclosure sale can take place. Therefore, those facing foreclosure will want to ensure that they understand what their rights are, so they can proceed accordingly.