Sacramento Foreclosures Threatening Railyards Project

by on cities

Sacramento foreclosures continue to post record numbers and it seems that another one is a potential addition to these numbers. Recently, a report revealed that a railyards project by developer Thomas Enterprises is facing possible foreclosure and if this problem is not immediately addressed, the whole project could be in a lot of trouble.

However, the problem of being one of the thousands of California foreclosures is not the only one facing Thomas Enterprises. Following news that the development project is facing foreclosure, a letter was received by the firm from the California Department of Housing and Community Development informing them that funding has been put on hold.

The ownership issue facing the railyards is not surprising in a state where foreclosures of every type, including Suntrust foreclosures and other bank foreclosures, have become quite common and news of properties getting foreclosed every day can be read and heard in all parts of the state. However, officials from the development company admit that the foreclosure, as well as the letter about funding, is very serious.

The letter from the department has stated that Thomas Enterprises has failed to pay its debts and has also failed to notify the state about the possible loan default. Every sale of foreclosed homes impacts the housing market of the state and the troubles facing the railyards is no less significant in terms of its possible effect on the local real estate market.

However, sources from city authorities reveal that they are not worried that the project will become one of the many Sacramento foreclosures. Officials have revealed that they are confident that Thomas Enterprises and Inland American will be able to come up with a suitable agreement and the project will continue.

The developer has a full month to stop the foreclosure. Should they fail to do so; the $30 million state funding will be cancelled. Officials from the development firm had confirmed that they are scheduled to meet with the company's lender to try and formulate an agreement to prevent foreclosure.

Despite the news that funding has been put on hold, local reports showed that workers still showed up and continued to work on the site. Officials from Thomas Enterprises also revealed that they are set to talk with their contractors to allay fears that the project will end up as one of the Sacramento foreclosures and that the project will be permanently shelved.

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