Problems of Foreclosure and Repo Homes Listings Did Not Spare Complex

by Donald Hanz on Repo Homes

As the number of dwellings ending up in foreclosure lists and repo homes listings continues to rise in Charlotte, North Carolina, commercial properties are also facing a battle of their own. The latest building facing foreclosure-related trouble is the EpiCentre entertainment complex in the uptown area of the city.

Most Charlotte foreclosed homes ended as such due to the inability of their owners to meet monthly mortgage obligations. In the case of EpiCentre, it is not just a problem of its lender starting foreclosure proceedings, it is also about being questioned for the way its finances were handled and how its financial records were kept and maintained.

Owners of the complex are feeling the heat after the bank has accused them of failing to pay a loan worth $90 million last December 2009. As with owners of foreclosed homes in North Carolina, the people behind the complex are facing the challenge of making their loan current or coming up with an alternative agreement to prevent the property from getting repossessed.

Unlike residences in repo homes listings where most cases are straightforward loan-related concerns, the case of EpiCentre also involves alleged suspicious transactions and financial irregularities as cited by lender Regions Bank. The bank has stated in its court filings that, despite thriving bars and restaurant businesses, the complex generates a relatively low cash flow.

With thousands of foreclosure homes for sale weighing down Charlotte's housing market, the foreclosure threat facing EpiCentre is considered an unwelcome development by most real estate industry members. However, the lender for the complex had insisted that the earning capability of EpiCentre should be established and the integrity of its financial records should be proven.

The commercial complex has been put under bankruptcy protection in July to allegedly prevent Regions Bank from taking over the property. In addition, Afshin Ghazi, part owner of the holding companies that manage EpiCentre, also filed a lawsuit against Regions. He claims that the bank has promised to modify the mortgage loan, a claim that Regions Bank has denied.

With foreclosure and repo homes listings in the city already a major problem, local authorities and real estate officials are hoping that the EpiCentre saga will end amicably and will not further aggravate an already troubled real estate market.