C.C. Myers Files for Personal Bankruptcy
The housing market is nothing like it used to be and California has had some of the greatest drops in home prices. While this may be great news for the potential home buyers, contractors are suffering. It’s in the latter group that we find C.C. Myers, the renowned highway contractor who just finished up the impressive Interstate 5 project.
Myers is being sued for $40 million dollars by Wachovia Bank for the Winchester Country Club, the Auburn luxury housing development that Myers personally developed. The development included 409 homes, 110 of which were occupied when the property went into foreclosure.
The personal bankruptcy does not affect the contracting firm, C.C. Myers Inc. of Rancho Cordova.
Court records say that Wachovia took over much of the Winchester development last December, when Myers defaulted on a $65 million loan for the project, including 137 unsold lots, the country club and an 18 hole golf course.
In his statement, the 70 year old Myers said, “The market conditions are the worst we’ve ever seen, and we were unable to convince our lenders to work with us to restructure the financing, so I was left with no other options. I’m devastated that it has come to this”. The lawyer for Wachovia Bank, William Pahland Jr. declined to comment.
The current residents of Winchester Country Club have plenty to say though. Richard Shepherd who moved to Winchester after retiring in the Bay Area four years ago said, “We love it here. We just feel sorry for the people who’ve lost their equity, the money they pumped into being a member”. Many are concerned that their club and golf memberships, which could add up to tens of thousands of dollars, will decline in value.
Wachovia has not yet made clear their future plans for the development.
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Posted by Michelle Ventress
on Aug 26 2008. Filed under News.
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So…the development for that property has just completely stopped? Is the golf course finished at least? If so, it sounds like those few people who are in the finished houses have lucked out and now have very exclusive property on the course! They’ve gone from the owners of 110 out of 409 available homes to owners of exclusive limited availability properties!
[...] himself, as well as a family trust, were also guarantors, but he went into personal bankruptcylast year. This created an automatic stay on Wachovia Bank’s suit as it pertained to him and [...]