WEST PALM BEACH — The City of West Palm Beach is moving closer to foreclosing on the Green Terrace condominium complex, leaving many families uncertain about what the future holds for their homes.

According to the city, the Green Terrace HOA owes the city more than $1.4 million in unpaid water bills, a debt that has been building for years. The property is currently involved in bankruptcy proceedings, and city officials say a foreclosure sale auction is expected in the future once the legal process moves forward. CBS12 News has been working to get answers for tenants and reviewed dozens of court documents tied to the bankruptcy case. Among the latest developments is a court filing from Friday, June 5, showing a judge approved a settlement agreement in the case. The filing indicates the bankruptcy process is continuing to move forward, even as the city seeks to recover money owed through its water utility liens. Once the bankruptcy process wraps up, the city will be able to move forward with foreclosure.

City officials told CBS12 that proceeds from a future sale of the property would help pay down the debt owed to the city. However, it remains unclear when a sale could take place.

For tenants, the uncertainty has been difficult. Many are worried they could be forced to quickly find a new place to live with little notice.

Tenants told CBS12 in April they felt blindsided by the bankruptcy filing and worried about what it could mean for their housing situation.

“This is something that you need a notice,” tenant Gina Goulart said. “So you say, ‘You guys need to move to another property.’ Don’t just keep taking our money.”

Goulart and other families say they are still waiting for clear answers about what comes next.

This isn’t the first time the complex has faced financial trouble. Around this same time last year, Green Terrace also filed for bankruptcy over unpaid bills. A last-minute payment at that time allowed residents to stay in their homes.

This time, however, the city appears to be continuing its efforts to move the property through the legal process as the bankruptcy case remains active.