Massive foreclosure: Western subdivisions rocked by default
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29 of the 40 lots in this upscale subdivision have been foreclosed upon.PHOTO BY LISA PROVENCE
In what could be Albemarle’s most spectacular foreclosure ever— totaling $17.4 million— holdings of two companies, including the developer of the pricey-parceled the Rocks subdivision in Ivy, will go on the auction block May 26 at 2pm at the county courthouse.
The Rocks LLC owes $12.5 million to BB&T, Branch Banking & Trust, which plans to sell off parcels that include 29 lots in the Ragged Mountain Farm subdivision on Dick Woods Road, according to foreclosure notices in the Daily Progress.
Another foreclosure that same day will sell parcels in Murphy’s Creek Farm off Blenheim Road to recoup another $4.9 million allegedly owed to BB&T. Lower Sherwood LLC is the debtor for the Murphy’s Creek properties, but it shares the same address— 1338 Stony Point Road, Suite 201— as the Rocks LLC.
“Those loans are current,” says Alex Toomy, who developed those properties, along with Amy Toomy, Jean Ann Woods, and Rick Carter of Southland Homes. He also denies online chatter that he has committed a strategic default, or that funds were in any way misappropriated.
“BB&T would not renew the notes, putting them in default,” says Toomy, explaining that lines of credit are typically are renewed every year, but because of federal guidelines, that didn’t happen this year.
Toomy also notes that he and Amy Toomy sold their shares in the Rocks LLC almost two years ago but still are co-owners of Lower Sherwood LLC.
Updated 1:55pm May 13 with the Rocks’ neighbor, Ragged Mountain Farms.
Updated May 14 with Ragged Mountain Farm photo and with Murphy’s Creek Farm foreclosure.
Updated May 18 with Alex Toomy comments.
–Original headline: The Rocks LLC crumbles?
I’LL BID $1 CANADIAN JUST SO MY ZIP CODE IS IVY NOT!!!!!!!!!!!!
How about a little more reporting on the names of local Realtors and bankers and developers who had a hand, as owners and “visionaries, in this McMansion project?
Hook: do your homework. Only one of these lots is in “The Rocks”–Lot 23. The rest are “Ragged Mountain Farm.”
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Is this strategic default, or actual inability to pay due?
In any event, “Strategic default” - bailing on a property as a business decision - is the latest leg of the housing crisis.
See stats, how-to guide, videos, here:
http://realcville.blogspot.com/2010/05/strategic-default-video-goes-viralwill.html
As far as I know, Amy and Alex Toomy are the folks behind these llcs. Them and a woman from Kentucky who put up the $?
Wow **** and Hook, I might make sure I get the facts straight before posting peoples names attached to a LLC. Haven’t you folks had enough legal issues?
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factsure, If I wasn’t pretty darn sure I had my facts right I wouldn’t have said anything.
It’s bank robbery without a gun so jail time is not a deterrent
Sitting around the factory lunchroom with my fellow factory workers, I looked across the table and said, “darn I wish I had gone into finance and not machine programming” Why? they asked. Because then the other guys in my frat or social circle would not have been mechanics, engineers, programmers and the like, they would have been future bank loan officers, developers, accountants etc. These are the boys who stay in touch after college and put the real moola together just like Trevor so keenly stated.
I am just a shcmuck and my coworkers are just schmucks. Someday after I have worked my whole life and built up a 401K, some group of financially savvy guys will steal every penny I have earned and I wont be able to do a darn thing about it….
unless I find out where they live.
Ken and Trevor;
Both comments are right on target. The comment about conversion rings true. People used to be prosecuted for embezzling corporate funds. What happens is just on a larger scale than what goes on in the local restaurant scene where the “entrepreneur” garners support from “investors” he knows socially, opens a restaurant and proceeds to divert the cash flow to his own benefit in expensive toys, playing the swell with waitresses and liberally dusting his nasal passages. In the meantime he shoots the suppliers, landlord, former owner, “through the grease” until he runs the game out and closes the place. Everyone who put faith in him loses and he gets to go on and play the game again. I could name specific local people here, but that might be “libelous”.
One of the things about the great real estate game is just like in the Bernie Madoff case (and locals like Donnelly and Terry Dowdell), the extent to which fraud underpins all the activity is hidden during the rise phase while people are so eager to fight their way to the feeding trough that they suspend use of any critical faculties they might have.
You are describing Carmichael’s Pub in Daytona Beach exactly. it went out of business in the early 90’s for the same reasons you mention.
One of the biggest shockers for me recently was the revelation that so many small businesses in this country don’t operate with any profit margin, instead borrowing to keep afloat.
Time to re-read “Bankrupcy 1995″ just for laughs
The LLCs are:
Alex and Amy Toomey
Rick Carter / Southland Construction
Jean Ann Woods
BB&T should auction the remaining lots at a discount to Investors with CASH! and then suit the remaining parties involved for remaining debt instead of washing it away in an LLC which is Bull####!