Foreclosures in Delray Beach

Bank United seeks foreclosure on Latitude Delray condos
Wednesday, September 16, 2009 Modified: Friday, September 18, 2009
South Florida Business Journal - by Brian Bandell

The Latitude Delray Beach Condominium is facing foreclosure.
Coral Gables-based BankUnited filed the foreclosure lawsuit Monday against Savion Holdings and managing members Isack Merenfeld, Jacques Abbo, Mayer Abbo and Jaime Weis, according to Palm Beach County Circuit Court records. BankUnited FSB, which regulators shut down in May, had given Savion Holdings a $23.3 million mortgage in 2005. A year later, the bank boosted the loan to $34.8 million for the project on the north side of Avenue L between South Dixie Highway and Southeast Sixth Avenue in Delray Beach.

According to the condominium documents, Latitude’s four buildings totaled 84 residential units and 68 storage units. Merenfeld said 58 units were completed. The developer sold nine units – all in 2008 – for prices ranging from $286,500 to $575,000. Merenfeld said he has not seen a copy of the complaint against him yet, so he's not sure whether he will contest it or not. He said he asked the bank to let him sell the units for less, but BankUnited has not agreed to it.
Once the Federal Deposit Insurance Corp. stepped in and signed a loss-sharing agreement with the new bank, negotiating his loan became more difficult, Merenfeld said. The losses on that project would be felt mostly by the FDIC.

“We believe the arrangement between the FDIC and the bank may not be the best solution for the taxpayer, or the best alternative to get the most money out of this project,” Merenfeld said.
Fort Lauderdale attorney Arthur H. Rice, who represents BankUnited, said the lawsuit seeks the full $34.8 million outstanding under the mortgage. He has not been in contact with the developer's lawyer.