Fashion Square Mall Under Foreclosure After Lender Claims $42 Million Loan Default

by San Antonio Attorney

Foreclosure process did not push through against Fashion Square Mall located on East Colonial Drive because a lender claimed the owners of the facility owed them almost $42 million loan.

Bancorp Bank filed complained to the Orlando federal court alleging that UP Development did not pay their dues from July to September, which add up to over $400,000.

Moreover, the foreclosure complaint includes 2015 property taxes of over $923,000 unpaid by Fashion Square Mall, which results in a lien attachment on the property.

UP Development revealed plans in 2013 to renovate the 44-year-old structure and put up a seven-story hotel to the property.

UP Development was unsure about the future of Sears and Macy’s. Sears went out of business in 2016. The developer hesitated to move forward without knowing for certain what will happen to those stores, which are near the planned hotel.

The retail developer has already spent $20 million in improvements.

The foreclosure by Bancorp Bank was filed just before the Eatonville Town Council decided to approve an offer by UP Development to construct houses, offices and shops on a 100-acre land. The location is in Wymore Road, where the notable Robert Hungerford Vocational High School is situated.

The Bancorp Bank wants payment for the loan balance, interest and lawyers’ fees.

Up Development released a statement that says the firm is not the same as UP Fieldgate US Investments-Fashion Square LLC, which owns the mall and the complaint filed by The Bancorp Bank.

There are several tools that people can use to defend the American Dream, having a home of their own. The Real Estate Attorneys San Antonio can help homeowners in danger of losing their residence.

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