Wells Fargo Bank had filed a Notice of Default on the 8 remaining townhomes and condominiums built by bankrupt builder, John Laing Homes. Four of the units were completed models; the remainder were 75% complete.
It was clear that a bulk sale would result in a heavily discounted price and that retail sales to homeowners would generate the maximum return of capital to the bank. Wells Fargo recognized that with relatively little additional capital, the unfinished units could be completed and individual units sold to homebuyers resulting in the greatest return of the banks investment and the least liability to homeowners claims. To implement the process, Wells Fargo requested the appointment of a Receiver. Robert Upton of Campus Properties LLC was appointed Receiver by Solano Superior Court. Campus Properties provided support services.
Appointment of a Receiver allowed the project to be finished and sold without completing the foreclosure process, keeping the bank out of the chain of title and exposure to SB 800 homeowner claims lasting 10 years, and out of the home building business.