Developer Merritt avoids foreclosure on his properties

February 17, 1993

Leroy M. Merritt, a real estate developer whose portfolio has been besieged on many fronts by the area's banks, avoided yesterday a planned foreclosure auction of several of his properties in Towson and Hunt Valley.

First American Bank of Maryland, which had filed a foreclosure suit for a $4.1 million loan, had scheduled an auction for today to sell five buildings in Mr. Merritt's Towson Business Center and Hunt Valley Business Center projects.

The bank reached a loan restructuring agreement with Mr. Merritt Monday and finalized the deal yesterday, according to Mr. Merritt's attorney, Roger Frankel.

First American, a subsidiary of Washington-based First American Bankshares Inc., was not the first bank to press Mr. Merritt for repayment of defaulted loans.

The Bank of Baltimore, Signet Bank/Maryland and Maryland National Bank have negotiated restructuring agreements with the Baltimore County developer.

And last week, a NationsBank Corp. unit filed a $10.7 million lawsuit against Mr. Merritt, seeking repayment of loans on other properties, the Daily Record reported last week.

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