I had my first situation dealing with a condo development going under. Had a client that put earnest money down on a West Loop develepment. Sometime in March the builder sent my client a new contract to sign because he had reconfigured the floor plans and my client lost about 40 square feet. At that time my client decided that he no longer wanted to go through with the project. I spoke to the builders' attorney and we submitted all the neccessary paperwork for the release of earnest money. We have been waiting since April 4 and still no earnest money check. It wasn't until yesterday morning that my broker and I hit the phones. By talking to different people we found out that the project is done and went bankrupt. My first experience in being involved with a project that went under. Add it to the list. We continued calling and my broker was able to get to someone in the company that handled the finances, after being on hold for about 40 min. After a little threatening and some raising of the voices the woman on the other line said she would be able to cut checks immediatly. It was that easy. A 15 minute drive to their office I had my clients earnest money back.
Homestead Realty Inc. - Milwaukee, WI
Greater Milwaukee Real Estate
good job Eric.
I was talking to someone that put an offer over a year ago on a condo that was being built that is now renegotiaiting the price due to falling market values. I did not know that was even possible, makes sense though.
Jun 22, 2008 07:08 AM
CENTURY 21 M.B. REAL ESTATE - Northbrook, IL
You have to be really careful these days with buying pre-construction. Alot of builders are just taking your earnest money and never retrurning it. Once the project goes bankrupt you will have to get in line in trying to get reimbursed. Its becoming a huge issue.
Jun 23, 2008 06:41 AM
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