Weak economy could forestall foreclosure.

• Position: Western

Bobby Ginn's Laurelmor project is struggling financially, but he has one thing in his favor. The real-estate market is so bad that lenders aren't eager to foreclose--even on the high-dollar acreage of western North Carolina's largest residential development (cover story, August).

That might buy Ginn wiggle room as he scrambles to restructure $675 million of debt held by Zurich, Switzerland-based Credit Suisse on Laurelmor and three other properties under development by Celebration, Fla.-based Ginn Resorts Co. President Robert Gidel says a real-estate slump forced the company to seek new terms and more time. "It became clear it would not be possible to meet home-site sales objectives necessary to make payments."

Ginn's problems--he also faces several lawsuits by disgruntled buyers--are reminiscent of those he suffered with luxury developments on Hilton Head Island, S.C., in the 1980s. There, more than $110 million in debt, he declared bankruptcy. He resurfaced in Florida in the 1990s and has since built--or started--more than a dozen projects. That rebound is in jeopardy now, says Don Tobin, a Florida real-estate analyst.

Laurelmor sprawls across 6,600 acres in Watauga and Wilkes counties. Since sales began...