LABELLE, FL. (March 30, 2005) -- A Naples bank foreclosed on a Miami land
developer and the court held a sale of its 25 lots in Port LaBelle today.
The 1st National Bank held a mortgage on 25 one-third acre lots in Port
LaBelle owned by Florida Development Corp. The company originally paid about
$23 thousand per lot in October, 2002 according to county records and was
unsuccessful at re-selling enough lots to pay the mortgage. The company sold
about two lots for about $23,000 each, and a home was built on one.
The bank, owed about $357,000, elected to foreclose when agreed upon
payments were not made. A Cape Coral investor, Rodney Troyer made the
successful bid at auction of $615, 000 or about $24,600 per lot. Also
bidding was a Broward county investor, and a local real estate agent.
Port LaBelle lots have been under a speculative frenzy in the last 12 months
as real estate agents make contracts to buy lots from mostly out-of-state
owners and then re-sell them within a few weeks at large markups.