Creditors seek $2.3 million from Faust developers

January 01, 1992|By Peter H. Frank

More than 100 subcontractors and other creditors of Faust Homes Inc. are seeking $2.3 million in unpaid debt from the large Baltimore County homebuilder, another victim of the area's lingering recession.

Faust, the developer of such well-known projects as Cloisters at Charles and Goucher Woods, agreed in court papers filed last month that it owed the creditors $2,257,341 and that payments would be made on demand.

It could not be determined yesterday whether any payments had been made subsequent to the court filing.

Neither the president of the company, Thomas J. Faust, who signed the judgment, nor his attorney could be reached for comment yesterday.

The lawsuit, filed three weeks ago in Baltimore County Circuit Court, was brought by Sanford A. Harris, an attorney representing 129 unsecured creditors of Faust Homes.

The lawsuit came as the latest indication that Faust was facing a cash shortage as at least one of its projects failed to generate needed funds.

In early September, Loyola Federal Savings and Loan foreclosed on the luxury town house community called Cloisters at Charles, at Charles Street and Bellona Avenue in Baltimore County.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.