Monday, August 27, 2012

Homebuyers Accuse BofA Of Helping Insolvent Developer Peddle Lots Subsequently Rendered Unbuildable Due To Failure To Provide Roads, Sewers, Utilities

In Asheville, North Carolina, Courthouse News Service reports:

  • Fifteen frustrated customers claim Bank of America defrauded them by helping a now-bankrupt developer sell lots without mentioning that "roads, sewers, water, gas, or electric service" were not part of the deal.

    In 15 separate federal complaints, homebuyers claim Bank of America aided and abetted the developer of Grey Rock, a subdivision of Lake Lure, N.C. The bank was so aggressive it set up a booth next to the developer at the site to recruit customers, according to Robert Nagle's complaint, which resembles the other 14.

    The plaintiffs claim BofA helped push the lots, but failed to tell buyers that the developer was insolvent and could not complete the promised "amenities," such as roads and utilities.

    After selling 435 lots for $90 million, the developer filed for bankruptcy in 2008, without completing the subdivision, and with only $905 in its bank account, according to the complaint.

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