SAN JOSE — A new battleground has emerged in the fight to control a former Greyhound bus terminal as the site for a significant housing project in downtown San Jose that has yet to begin.

A lender controlled by real estate executives William Wang and Chris Jiashu Xu is attempting to seize the property at 60 and 70 South Almaden Ave. through a foreclosure of a delinquent $19.5 million loan.

More than 700 homes have been proposed for a double-tower housing project at the location.

In July, the development site’s owner, an affiliate of China-based real estate firm Z&L Properties , filed for bankruptcy in a quest to reorganize its finances. The bankruptcy has delayed foreclosure efforts, which enabled Z&L to cling to ownership of the site.

On Oct. 2, a federal judge issued an order tha

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