One of the more gratifying aspects of representing the pre-sales buyers in this blog is the help and insights we gained from others around the country. I followed up in a mail to the Vue Orlando with this thread:
Cristian, I couldn’t have hoped for a more informative email! Do you have any problems with this being posted in the blog?
I really hope that perhaps you can step into the Vue Charlotte at some point. I really like your style. …One last question…do you see any hope that a new developer/buyer at auction coming in (like yourself) would be able to negotiate or have any economic wiggle room to allow the pre-sales buyers to recover at least some of their deposit if they agreed go ahead and close on their orignal units within a certain time period? Or are all the
pre-sales buyers out of luck in that regard?
Cristian once again graciously replied as follows:
It’s highly unlikely. In an ideal situation, we would love to partner with the lender on the tower to honor your deposits and close at reasonable market values. It doesn’t happen this way very often however. Once a lender defaults a developer and forecloses, the deposits are liquidated as damages to the senior lender. Many banks don’t want to own real estate and get it off the books quickly. Losses are more tangible to report to share holders instead of Real Estate Owned. I would love for the lenders to contact us on a partnership.
Many deposits may be tied up in litigation as well.
I have no problem with you posting on the blog.
So there you have it. While I must emphasize again there is no connection between the Vue Orlando and the Vue Charlotte in terms of ownership, it is certainly not unreasonable for us to look at what happened in Orlando as a sign of what might happen here. I know of no communication from the Vue Charlotte that we can expect anything far different from what we are speculating, but I still hold up some hope that both MCL and the pre-sales buyers can come to some reasonable ending that is not win-lose or lose-win.
We didn’t get to the court case this week but certainly plan to do so next week.
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