"A lender controlled by real estate executives William Wang and Chris Jiashu Xu is attempting to seize the property at 60 and 70 South Almaden Ave. through a foreclosure of a delinquent $19.5 million loan. More than 700 homes have been proposed for a double-tower housing project at the location. In July, the development site's owner, an affiliate of China-based real estate firm Z&L Properties, filed for bankruptcy in a quest to reorganize its finances."
"The bankruptcy has delayed foreclosure efforts, which enabled Z&L to cling to ownership of the site. On Oct. 2, a federal judge issued an order that would have effectively terminated the bankruptcy case and allowed the lending group to proceed with the foreclosure and take control of the property, bankruptcy court records show. The same day, the Z&L Properties affiliate filed a lawsuit in Santa Clara County Superior Court to block the foreclosure."
"But the lender's proposal for a workout and renewal of a financing package consisted primarily of a loan with a 10% interest rate, which was higher than the existing rate on the delinquent loan of about 8%, the Santa Clara County lawsuit states. The October 2024 renewal was not a real workout, the Z&L affiliate stated in a court filing. It was a foreclosure trap."
A lender controlled by William Wang and Chris Jiashu Xu is pursuing foreclosure of a delinquent $19.5 million loan on property at 60 and 70 South Almaden Ave. More than 700 homes were proposed for a double-tower project at the former Greyhound bus terminal. An affiliate of China-based Z&L Properties filed for bankruptcy in July to reorganize finances, which delayed foreclosure and preserved ownership. On Oct. 2, a federal judge issued an order that would have ended the bankruptcy and allowed foreclosure, and the Z&L affiliate promptly sued in Santa Clara County alleging wrongful foreclosure, unfair business practices and related claims. Lender renewal terms included a predominantly 10% loan that the Z&L affiliate called a foreclosure trap. Permits have expired and no construction began.
Read at www.mercurynews.com
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