The owners of the Washington Shores Villages apartments owe the city of Orlando close to $2 million for code violations.
People living in the apartment complex said they live in terrible conditions with pests, mold and other problems.
Real estate attorney Karen Wonseter said the foreclosure proceedings between PDQ, the company that owns Washington Shores Villages, and Fannie Mae came to a head.
"The court said, I don't believe you, I think the bank has shown that you are lying,’” Wonseter said.
Court documents show Fannie Mae wants the rent from tenants in the apartment complex.
According to documents, they've requested PDQ turn over the paperwork that shows how much they're entitled to numerous times.
So far the company hasn't done it and had a number of excuses.
PDQ told the judge they were a paper-only business and didn't have electronic records. Later they claimed there was a fire and records were destroyed. Then they claimed a hard drive containing documents crashed.
The court didn't buy it and said PDQ took deliberate steps to destroy electronically stored information, and misrepresented its record-keeping practices.
"In the end, the judge said, ‘You cannot tell me anything at this point on that I am going to believe. As a matter of law, this case is over. Default entered against (PDQ), Fannie Mae can go forward with their case. You can't stop it,’” Wonseter said.
People who in Washington Shores Villages said they were afraid they'd be evicted if they talked on camera about the conditions.
As for the court case, Wonseter believes since the judge accused PDQ of lying, they may now be forced to pay their debts.
Slideshow: Washington Shores Villages apartments