San Jose towers owner gets court to order delay for condo foreclosures
The owner of a double-tower complex in downtown San Jose has won a court order to delay a foreclosure against part of the site.
SAN JOSE — The owner of a double-tower housing complex in downtown San Jose has won a court order to temporarily halt a foreclosure proceeding to seize control of several condos in the highrises.
China-based Z&L Properties faces a foreclosure attempt due to delinquencies that have arisen from unpaid dues to the homeowners’ association for unsold condos in the western tower, county real estate records show.
Once a condo is sold, the new owners are responsible for paying the homeowners’ dues on those purchased units. The real estate developer has managed to sell scores of condos in the western tower, county documents show.
Z&L, however, is responsible for paying the homeowners’ dues on condos that have been completed but not yet sold.
Face with the prospect of a foreclosure proceeding scheduled for this month, Z&L Properties filed a lawsuit in March against two homeowners association members.
The Z&L Properties lawsuit claimed, in part, that the foreclosure was being undertaken improperly and that some association rules were breached.
On April 2, a temporary restraining order was granted by Santa Clara County Superior Court Judge Helen Williams that halts the foreclosure proceeding until the court can further review and assess the foreclosure efforts and the Z&L lawsuit.
The county judge’s order represents a win for Z&L Properties, at least for now. The judge ordered the two owners association members named in the lawsuit to appear in court in early May for a hearing on the situation.