Mortgage holder selling property under power of sale

This article was updated March 5, 2026

Heather Wright/The Independent

A Blue Point housing development which has sat virtually empty for 15 years is in foreclosure and one Plympton-Wyoming councillor is looking for assurances the municipality and neighbours won’t be left holding the bag.

Allan Developments created Blue Point Lookout as an adult condominium community behind Blue Point Drive. It included a community room and was expected to have a pool at one point. But for years, the streets were mostly empty. Recently, spec homes were built but were surrounded by dirt and weeds in the summer.

The property rebranded as Lake Huron Heights. Two of the spec homes have been sold by the mortgage holder since it took possession in August.

Councillor Kristen Rodrigues, who lives in Blue Point, says 22-acre property is up for sale. A real estate listing says the owners are looking for about $3.6 million in a Power of Sale transaction. 

Lenders chose a Power of Sale when the borrower is defaulting on its loan. They can pay the missed payments to recover the property.

Rodrigues says neighbours around the site are wondering how this will affect their properties and the problems created by the development.

“There is a lot of concern in the neighborhood, because it has set derelict for so many years, 15 and counting,” she told council Feb. 25. 

“We’ve heard it time and time again how that drainage has negatively impacted the existing neighborhoods,” Rodrigues said adding there is “a huge mountain of dirt that has impacted things significantly.”

She says there is “overgrown brush, weeds, mosquitoes, all kinds of problems. And it’s just now that it’s in a foreclosure state, it’s even having more of a negative impact on the surrounding area.”

The councillor wanted to know what happens if a new owner takes over. 

“Can we put in some sort of timeline so it’s not another 15 years of heartache? There is a drainage bill that’s going to go up. Who does it go to? Who pays for it?” she asked.

Plympton-Wyoming’s CAO, Adam Sobanski, says right now they’re monitoring the situation and there are still ways to address concerns about the property. For example, if the weeds grow in the vacant subdivision this spring, neighbours can call Lambton County to have the bylaw enforcement officers issue warnings. The town may end up cleaning things up, but the bill will be put on the taxes which would go to the next person who owns the property. 

The drainage problems may be more difficult to deal with. Sobanski said, the site hasn’t been changed since the subdivision was approved, with a drainage plan, so “there may not be any sweeping improvements that can be done by the municipality. But if they’re not in compliance with bylaws, then there are things we can do.”

And he says taxpayers may not be left holding the bag since it has a letter of credit from the current owner. 

“Letters of credit are great because the banks hold them and they do not let the developers touch them. They wait for us to say that they can be released. So that’s something we have in our hands,” Sobanski says.

“We would only be able to use the letter of credit for things that put our infrastructure at risk, because it is a private development, per se, but we would be able to use the letter of credit to potentially adjust drainage, if doesn’t meet the drainage plan that was there, potentially to make repairs if those repairs weren’t made, and potentially to protect our infrastructure.”

Sobanski added if in the future, council wanted to change the subdivision agreement, it could do that if whoever purchases the property wants to make changes to the area with a subdivision agreement.

In an email, Realtor Sheana Lasenby says ADJ Holdings, the mortgagee of the property, has “Since taking possession in August 2025, the Lender has “maintained the property to all approved standards,” adding the “mountain of dirt” Rodrigues referenced at council had been there long before the mortgagee took control of the property. Lasenby says ADJ Holdings “has worked diligently to mitigate pre-existing site issues.”