SAN JOSE — An apartment building near downtown San Jose has gone into default on its loan and now faces a potential foreclosure due to its delinquent mortgage.

The Neo on First is in default on $21 million in financing, according to documents filed on Sept. 4 with the Santa Clara County Recorder’s Office. CTBC Bank Corp. provided the loan that has become delinquent.

The 50-unit apartment complex is located at 975 South First St., a few blocks from the southern edges of downtown San Jose. The four-story property was built in 2020.

The San Jose residential hub’s loan default is the latest example of widening problems in the housing market in the Bay Area.

The Neo complex is a few blocks from another San Jose apartment property that is also in default on its financing.

In July, The Fay a

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