Business Journal: Hundreds To Foreclose On Placer Land
Hundreds of individual lenders, including some who invested their retirement accounts, are attempting to collect millions of dollars from land in Placer County.
Monday, April 7, 2008
More than 300 individual lenders, including some living on fixed incomes, have foreclosed on 340 acres in the Placer Vineyards development in south Placer County. The land – just part of the 5,200-acre master-plan development – is scheduled to be auctioned Wednesday at the Roseville City Hall annex in hopes of raising money owed to the individual lenders. It’s one of the largest foreclosures in the region, and was prompted by a Las Vegas company’s bankruptcy and the slumping housing market. The property is owned by Placer County Land Investors, which raised $31 million to buy the land in 2004 through individual lenders who loaned at least $50,000 each. As a group of individual lenders they can foreclose on the property and auction the land. They hope to collect at least some of the $51 million now owed, which includes the principal balance, interest and penalties.