foreclosure – Real Estate News & Update | BCHomeWorld Blog https://blog.bchomeworld.com Real Estate News & Update in Greater Vancouver | BCHomeWorld Blog Mon, 25 Nov 2024 23:46:24 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://blog.bchomeworld.com/dr/wp-content/uploads/2024/11/512Red-150x150.png foreclosure – Real Estate News & Update | BCHomeWorld Blog https://blog.bchomeworld.com 32 32 Four Housing Projects by iFortune in Metro Vancouver Face Ongoing Foreclosure Proceedings https://blog.bchomeworld.com/four-housing-projects-by-ifortune-in-metro-vancouver-face-ongoing-foreclosure-proceedings/ https://blog.bchomeworld.com/four-housing-projects-by-ifortune-in-metro-vancouver-face-ongoing-foreclosure-proceedings/#respond Wed, 13 Nov 2024 23:42:54 +0000 https://blog.bchomeworld.com/?p=45 Read more]]> Many real estate companies in British Columbia have recently gone bankrupt – this article is about iFortune foreclosure. When one project faces bankruptcy, other projects by the same company are also likely facing similar problems. The latest example is iFortune Homes, based in Richmond. Like other companies such as Coromandel Properties, Align Properties, Quarry Rock Developments, and AimForce Development, iFortune Homes is now facing foreclosure proceedings, according to court filings obtained by Storeys.

Elm 41 at 2465 W 41st Avenue, Vancouver

Most of iFortune Homes’ projects were in the pre-construction stage meaning they were not generating income while debt was accumulating. The foreclosures against iFortune Homes involve five lenders and four projects, with two located in Vancouver one in Richmond, and one in Burnaby. Feng Luan is named as a guarantor in all of the proceedings. The court documents do not specify Luan’s relationship to iFortune Homes, but one document identifies him as “Feng (Peter) Luan.” The iFortune Homes website lists Peter Luan as the company’s President. 2465 W 41st Avenue Vancouver (Elm41) One notable foreclosure is for 2465 W 41st Avenue in Vancouver’s Kerrisdale neighbourhood, where iFortune Homes planned a 23-unit strata building called Elm41 likely named after the nearby Elm Park.

The project had reached the stage of accepting pre-sale registrations. iFortune Homes owns 2465 W 41st Avenue through iFortune West41 Holdings Ltd., which is facing foreclosure proceedings from both the first and second mortgage holders. CMLS Financial, now owned by Nesto, is the first mortgage holder & initiated foreclosure proceedings over a year ago, on August 18, 2023. This relates to a $13,000,000 loan from September 2019. iFortune Homes failed to make monthly payments starting in March 2023.

After issuing default notices, CMLS received some payments in June but in July, iFortune Homes’ bank account had insufficient funds, leading to another default and the foreclosure. On September 21, 2023, the court confirmed the outstanding debt at $13444,005.33 and set the redemption date (the date by which iFortune Homes can pay to halt the foreclosure) at March 21, 2024. The second mortgage holder HMT Holdings Inc. (also known as Harbour Mortgage Corp), filed a separate foreclosure application on August 30 last year. This relates to a $6,000,000 loan from May 2022, which iFortune Homes also defaulted on in July 2023 by failing to make an interest payment.

HMT Holdings named several companies and individuals as respondents, including Feng Luan, identifying them as corporate and personal guarantors of the loan. On February 29 2024, the court confirmed the outstanding debt at $7,195,580.65, with interest continuing to accrue, and set the redemption date at March 1. HMT Holdings obtained the right to sell the property but was unable to find a buyer. This right then transferred to CMLS Financial last month. In a rare occurrence, HMT Holdings also sought to sell other properties owned by the guarantors to recover what they are owed.

iFortune Foreclosure - Elm41 by iFortune Living Room

Auberry at 463 W 59th Avenue, Vancouver

The court allowed the sale of a $4,732,000 home in West Vancouver owned by one guarantor, Miao Wang. However the court did not allow the sale of a strata office unit in Richmond owned by another guarantor, Yan Jing Wang. 463 W 59th Avenue, Vancouver (Auberry) The second foreclosure property is 463 W 59th Avenue, near Cambie Street, where iFortune Homes planned two six-story strata buildings with a total of 63 units according to a City of Vancouver development application.Here is the text rewritten with factual & easy to understand vocabulary, using only English: iFortune Homes, a real estate developer, had plans for a project called Auberry in Vancouver. The project had reached the stage where they were accepting pre-sale registrations from potential buyers. iFortune Homes owns a property at 463 W 59th Avenue through a company called iFortune West 59 Holdings Ltd. This property is currently facing foreclosure proceedings along with some other related companies like iFortune West 59 (BT) Ltd.

iFortune West 59 (GP) Ltd. and iFortune West 59 Limited Partnership. The property consists of four single-family homes that were combined into one larger property in August 2021. The foreclosure was initiated on April 17 2024, by a company called 1282882 BC Ltd., which is the general partner of Magnolia V3 Limited Partnership.

This foreclosure is related to a loan agreement between Magnolia V3 and the developer, iFortune Homes, from March 23, 2021. The original loan amount was $16000,000. The guarantors for this loan who are also named in the foreclosure proceedings, were iFortune West 59 Limited Partnership, Xuling Holdings Ltd. and Feng Luan. On July 25, the Supreme Court issued an order confirming that the outstanding debt owed by iFortune Homes was $17,802,232.66 with interest continuing to accrue at 25% per year.

The court set a redemption date of July 26, 2024, after which the property could be sold. Magnolia V3 was granted the right to conduct the sale, and the property has been listed for sale by a real estate agent for $20,000,000. The property is valued at $21,163,000 by BC Assessment. There is another company, Globalwide Capital Management Corporation, that holds a second mortgage on the property.

However, Magnolia V3 has been unable to locate or serve legal documents to Globalwide because their registered office appears to be vacant and the company’s director cannot be found. Mega Mortgage Company & iFortune Homes had an agreement for a loan. The agreement was extended until November 4, 2024. However, iFortune Homes failed to make the required payments, & on April 18, Mega Mortgage Company formally demanded payment. According to Mega, iFortune Homes owes $15,440,557.53 as of May 23, with interest increasing by $3,863.01 each day.

2nd Ranking Mortgage Holder

Another company, 0980202 BC Ltd., also has a mortgage on the property. On June 25, this company filed a response to Mega’s foreclosure request. They argued that companies with lower-ranking mortgages are typically allowed to handle the sale before companies with higher-ranking mortgages. As of September 12, the Supreme Court has not yet issued an order confirming the debt & setting a deadline for payment, and no company has been granted permission to handle the sale. Feng Luan & Xu Ling Sun are listed as guarantors for the loan.

The court has had difficulty serving legal documents to Xu Ling Sun. On nine different days, process servers visited Sun’s home in West Vancouver, but they were unable to deliver the documents to her. Mega Mortgage Company stated that the process servers received no response from Sun regarding their attempts to serve her. Xu Ling Sun appears to be the director of Xuling Holdings Ltd. which is also a guarantor for the loan. Sun seems to be a family member of Peter Luan. The home where process servers tried to serve Sun is also the registered address of Peter Luan, according to court documents. Luan confirmed to a process server that he and Sun share the same home address. Also, Xuling Holdings Ltd.

and iFortune Homes have the same registered office address in Richmond. Across four projects, the total outstanding debt owed by iFortune Homes is $59,108,707, & interest continues to accumulate. These four projects appear to be the majority of iFortune Homes’ projects. Other projects listed on their website do not seem to be under foreclosure proceedings & some do not appear to be owned by iFortune Homes, as the company also provides development services. One project not listed on their website is Glitz, which received attention in 2018.

Glitz was planned to be an 11-story mixed-use project with 75 units office space, and retail space in Richmond. While not under foreclosure the Glitz project has been involved in a legal battle for over two years regarding alleged damage to the City of Richmond’s sanitary lines caused by preparing the land for construction. Various contractors are still arguing in court filings as recently as June 2024 about whether there was damage whether the damage was foreseeable, & who is liable. Attempts to reach Peter Luan for comment on September 11 were unsuccessful.

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A 55-storey Tower In Vancouver’s West End Has Been Placed Under Receivership https://blog.bchomeworld.com/a-55-storey-tower-in-vancouvers-west-end-has-been-placed-under-receivership/ https://blog.bchomeworld.com/a-55-storey-tower-in-vancouvers-west-end-has-been-placed-under-receivership/#respond Fri, 19 Jan 2024 22:51:00 +0000 https://blog.bchomeworld.com/?p=55 Read more]]> A 55-storey Tower In Vancouver’s West End Has Been Placed Under Receivership At a Glance

Developers of a high-profile high-rise project in Vancouver’s West End have been placed under receivership, as they owe $82.2 million to the Bank of Montreal. The project, called 1045 Haro Street, consists of a 55-storey condo tower and a 15-storey tower with retail space, a childcare facility, and a public plaza. The owners of the property purchased it in 2018 but have been unable to meet the city’s requirements to move forward with the project. They attempted to sell the property but received offers significantly lower than the purchase price. The Bank of Montreal subsequently filed for receivership to arrange a sale of the property. The appointed receiver will not be able to seek approval for sale offers until April 26.

The Information About The 55-storey Tower In Vancouver’s West End Has Been Placed Under Receivership

A big building project in Vancouver called 1045 Haro Street has hit a roadblock. The developers, Haro-Thurlow Street Project Limited Partnership, are in financial trouble and owe $82.2 million. A bank called the Bank of Montreal has taken legal action and asked the court to appoint someone to take over the project and sell the property.

The project was supposed to include a 55-storey condo tower and a 15-storey tower with 450 condos and 66 rental units. The plan also included retail space, a childcare facility, and a public plaza.

The property is owned by Harlow Holdings Ltd., but the partnership that was responsible for the development is the one in financial trouble. The partnership is made up of several companies, including 11044227 BC Ltd., Forseed Haro Holdings Ltd., and Terrapoint Developments Ltd.

Intracorp Homes, a Vancouver developer, was managing the project, but they are not in financial trouble themselves. The architect for the project is Patkau Architects.

The owners of the property bought it in 2018 for $172.75 million, with financing from the Bank of Montreal and the companies in the partnership. They have been unable to meet the requirements set by the City of Vancouver to move forward with the project, and they have not formally applied for a development permit. One of the reasons for this is that the project would block some views, which is currently being reviewed by the city.

The owners have been in talks with the bank to try to extend the deadline to repay their debt, but the bank has refused. The owners then tried to sell the property, but the offers they received were much lower than what they paid for it. This caused tension between the partners in the project.

The owners missed a payment in July 2023, and the bank demanded repayment. When the owners did not comply, the bank filed for receivership. A receiver is someone who takes control of a property and sells it to pay off the debt.

The appointment of the receiver was approved by the court, but they are not allowed to sell the property until after February 23. They also have to get court approval for any offers they receive.

The property has been appraised at $192 million, but it is unclear if any lenders would recognize that value. The value may have also decreased since then due to various factors such as higher interest rates and construction costs.

If the receiver does start a sales process, they will likely hire a real estate brokerage to help. The offers they receive will be narrowed down before being presented to the court for approval.

A 55-storey Tower In Vancouver's West End Has Been Placed Under Receivership
Not the photo of the project. A 55-storey Tower In Vancouver’s West End Has Been Placed Under Receivership

Wrapping Up

Major high-rise development project in Vancouver, the developers have been placed under receivership due to an outstanding debt of $82.2M owed to the Bank of Montreal. The project planned for 830-850 Thurlow Street and 1045 Haro Street, was set to include a 55-storey strata condo tower, a 15-storey tower with 450 strata condominiums and 66 rental units, as well as retail space, a childcare facility, and a public plaza. The development site is owned by Harlow Holdings Ltd. and beneficially owned by Haro-Thurlow Street Project Limited Partnership (HTLP), which is owned by several parties. Intracorp Homes is serving as the development manager of the project but is not subject to the receivership application. The owners defaulted on their interest payment in July 2023 and BMO subsequently made a demand for payment on August 29, leading to the receivership application.

BMO is seeking the appointment of a receiver to arrange a timely sale of a property owned by CM Group, as they have lost confidence that the owners are working to repay the debt. The property’s value is disputed, with an appraisal valuing it at $192M based on development potential, but the president of Intracorp Homes expects it to be even lower than the $93M offer submitted by Chard Development. The owners have identified three lenders willing to provide loans to repay the debt, but BMO claims no evidence has been provided. Deloitte has been appointed as the receiver, but will not be able to undertake any sales efforts until after February 23 and cannot seek approval of any sale offers until after April 26.

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Langley Townhouse Project (BC) in Receivership, Owes Nearly $40 Million https://blog.bchomeworld.com/langley-townhouse-project-bc-in-receivership-owes-nearly-40-million/ https://blog.bchomeworld.com/langley-townhouse-project-bc-in-receivership-owes-nearly-40-million/#respond Sat, 06 Jan 2024 23:41:00 +0000 https://blog.bchomeworld.com/?p=67 Read more]]> Langley Townhouse Project in Receivership, Owes Nearly $40 Million at a Glance

A townhouse project in Langley, British Columbia, known as The Willoughby, has been put into receivership after owing creditors more than CAD39.9m ($30.5m). The project was being built by Quarry Rock Developments and was partly built with a few townhouses finished and others in various stages of completion. MNP Ltd., the receiver, is winterizing the project to protect the partially built townhouses from the weather and will assess whether to complete the construction of existing homes or sell them as is. Five creditors have been listed, including four mortgage holders on the project.

The Information about Langley Townhouse Project in Receivership, Owes Nearly $40 Million

The new development project at 204 Street has stopped its development.

A townhouse development project in Langley, consisting of 87 units, is currently in receivership, meaning it owes creditors over $39.9 million, according to court documents.

The project, called The Willoughby, is located on 70A Avenue in Langley, specifically on the Willoughby Slope. It was taken over by receivers on November 8, 2023, as ordered by B.C. Supreme Court Justice Joel Groves under the Bankruptcy and Insolvency Act. When a development project is put into receivership, a court-appointed receiver will try to either finish the project or sell it in order to repay the creditors who have not been paid.

The receiver for this project is MNP Ltd., who has submitted documents listing five creditors. These creditors include four mortgage holders on the project: MCAP financial corporation, which claims to be owed $29.6 million, Canadian Mortgage Servicing Corporation, claiming $7.5 million, and Steelcrest Construction, which has a builders lien on the development for more than $2.8 million. There are two other creditors who hold mortgages on the project, but their claimed amounts are listed as “unknown” in the receivership filing.

The first phase of the project has been partially built, with a few townhouses completed and others in various stages of completion. Currently, MNP is taking steps to protect the partially-built townhouses from the weather.

Next, MNP will assess the project and determine whether to complete the construction of the existing homes or sell them as they are. The recommendations will then be presented to the court, most likely in late January or early February.

Attempts to reach Quarry Rock Developments (QRD), the developer of the project, for comment were unsuccessful as their office was closed during the holidays.

In addition, QRD is facing another creditor’s court action over a nearby property on 204 Street. Canadian Western Trust Company has filed a petition with the B.C. courts to foreclose on the property due to a $6 million loan to another QRD holding company. QRD’s lawyers have responded, stating that the total developed value of that property and two adjacent properties will be $230 million, suggesting that there is enough equity in the subject property to pay off the mortgage.

It is important to note that none of the claims mentioned in the filed documents have been proven in court.

Langley Townhouse Project in Receivership, Owes Nearly $40 Million

Wrapping Up

A townhouse project in Langley, known as The Willoughby, has been placed in receivership after owing creditors over $39.9 million, according to court documents. The project was being developed by Quarry Rock Developments (QRD) and is located on the Willoughby Slope. The receiver, MNP Ltd., has listed five creditors, including several mortgage holders on the project. Phase one of the project is partially built, and MNP is currently winterizing the development to protect it from the weather. MNP will assess whether to complete the construction or sell the project as is and make recommendations to the court in late January or early February. QRD is also facing a separate creditor’s court action over another nearby property.

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