20 Bayard is in trouble (refer to link below). Does anyone have any insight on what will happen to the current owners when the developers go under? For example, will the current owners be responsible for all of the common charges? Will the owners be responsible for paying all taxes? Who will contribute to the reserves? I'm considering closing on a new development in Williamsburg (signed a purchase... [more]
20 Bayard is in trouble (refer to link below). Does anyone have any insight on what will happen to the current owners when the developers go under? For example, will the current owners be responsible for all of the common charges? Will the owners be responsible for paying all taxes? Who will contribute to the reserves?
I'm considering closing on a new development in Williamsburg (signed a purchase agreement in January 2008) but am concerned about the financial stability of the building and how I will be impacted if the majority of the building remains unsold and if the developer potential goes bankrupt.
Does anyone have any insight on what will really happen to the owners based upon real cases?
http://therealdeal.com/newyork/articles/lack-of-funding-pushed-20-bayard-designed-by-karl-fischer-into-bankruptcy-court-documents-show[less]
Response by LoftyDreams
about 16 years ago
Posts: 274
Member since: Aug 2009
Thanks for asking this.
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Response by politikat
about 16 years ago
Posts: 17
Member since: Jul 2008
30 years, whaddya think?
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Response by cfranch
about 16 years ago
Posts: 270
Member since: Feb 2009
Would have been better for condo owners if the buildinig went into foreclosure. The bank would then have to pick up all the expenses you cite. Unclear what happens in bankrupcy.
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Response by BillyRes
about 16 years ago
Posts: 166
Member since: Feb 2008
Does anyone have any additional insight or experience? What will happen to owners in a building that is not completely sold and the developer either goes bankrupt or into foreclosure? I don't think most developers' balance sheets can weather out this economic environment for more than 2 years. Or perhaps they can I have nothing to worry about. Thanks.
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Response by gcondo
about 16 years ago
Posts: 1111
Member since: Feb 2009
Foreclosure means there are lenders who would assume ownership and therefore the payments.
Bankruptcy? I would imagine someone would pick up the development cheap in bankruptcy and assume the payments - in the meantime, I guess you pay.
Thanks for asking this.
30 years, whaddya think?
Would have been better for condo owners if the buildinig went into foreclosure. The bank would then have to pick up all the expenses you cite. Unclear what happens in bankrupcy.
Does anyone have any additional insight or experience? What will happen to owners in a building that is not completely sold and the developer either goes bankrupt or into foreclosure? I don't think most developers' balance sheets can weather out this economic environment for more than 2 years. Or perhaps they can I have nothing to worry about. Thanks.
Foreclosure means there are lenders who would assume ownership and therefore the payments.
Bankruptcy? I would imagine someone would pick up the development cheap in bankruptcy and assume the payments - in the meantime, I guess you pay.