$9 Million Foreclosure Suit Filed Against Developer

A Florida bank has filed a $9 million foreclosure lawsuit against a Miami-based developer, which has the potential to put an end to a new development slated for the city Opa-locka.

Sailboat Cove Ventures was reportedly handed the lawsuit on June 26 from Mercantil Commercebank, South Florida Business Journal reports. The bank, who is being represented by Miami attorney Peter H. Levitt, had previously given the developer an $11.6 million mortgage.

Also named in the complaint was the Metro Miami Action Plan Trust, an organization that gave Sailboat Cove a $1 million second mortgage on the project in 2005, according to the article. The mortgage was given on the stipulation that the developer create seven affordable housing units in the 171-unit building.

Sailboat reportedly sold 35 units at the Mirage at Sailboat Cove, the property in question, from late 2007. The complaint is seeking the $9 million remaining on the first mortgage.

According to the news provider, if the foreclosure lawsuit is successful, Sailboat Cove could lose the remaining 136 unsold units as well as the $1 million from the Trust.