Eagle Trace Golf Club Foreclosure
Assignment #5, Task #1

I found an article from the South Florida Business Journal on a foreclose of the Eagle Trace Golf Club in late 2012 here.

This golf club was owned by Heritage Golf Group, a San Diego company that manages several courses around the country. The course was bought for $4.1 million from the TPC Club in 2007 in which Heritage took out a mortgage for $6.4 million through GE Capital (the lending arm of General Electric).  This course, located in Coral Springs, Florida, has prominently featured several events over the years for the PGA Tour. This foreclosure arose from GECC filing a lawsuit for foreclosure against Heritage.

A questions to be answered for the assignment:

• This foreclosure was a Judicial Foreclosure because GECC went through the court system.
• The loan obtained by Heritage for the purchase of the property had a stipulation in it that made the mortgage subject to foreclosure if the necessary funds were not channeled to GE Capital. The clubs private membership structure and high member dues has led to the decrease in course revenue. During the recent economic crisis, there are still lingering effects in some states more than others. Since consumers are cutting discretionary spending, golf memberships are one of the first things to be cut. The inability of the course to adapt to the harsh economic climate and to change their membership structure has led to their eventual foreclosure.

The lawsuit is still being fought today.