Any trouble closing on SLU condos?

[rollinst.]

I am (hopefully) moving into Rollin Street Flats in March when it is finished. I was wondering if anyone else here has purchased a presale unit there and if they are worried about closing on their unit? Or if anyone has advice for those of us who are. We are feeling a bit anxious at this point.

[Marc Gimbel]

Many moons ago I was a mortgage broker, and although times and regs may have changed it was always standard contractual language in a real estate purchase agreement that if the buyer can not obtain mortgage financing the deal was canceled and earnest money deposits had to be returned. I would consult with a real estate attorney; it seems to me that if a current property appraisal will not support the purchase price, the buyer could easily obtain a decline letter from a mortgage banker, which would constitute an inability to obtain mortgage financing, and a cancelation of the purchase agreement. But I'm not a real estate attorney.

Also, even if all of this is incorrect and you are obligated, remember: this is a pressure-filled time for all real estate developers. I would think that if a buyer decided to cancel their contract - even foregoing the security deposit - that places the developer in a worse position, as now they have another unit to sell and at current market prices. Seems to me, if they were smart they'd prefer to negotiate with the current purchaser.

[Hasbro Zepok]

This agreement doesn't allow for anything except a "hardship" clause, which is at the discretion of the seller. You essentially "pre-qualified" and that binds you to the terms. I've been over it several times. They certainly could offer an out for people, but per the terms of the sales contract, they are not obligated. The language is quite clear. Your point about the appraisal is people's best bet. If it won't appraise for the purchase amount, something has to give. And I can't imagine that in todays mortgage market and all the noise about inflated appraisals, that these units could appraise at anything close to the value that was placed on them 18-24 months ago.

[Chris Johnson]

have heard that a downtown lawfirm that is handling these Earnest Money Deposit cases. It has been conveyed to me that you can have a very strong legal bases or several bases to demand that your Earnest money be returned to you along with accrued interest. I was told that Stephen J. Crane at Crane Dunham is handling these matters. I would contact him if anyone hasn't closed or is feeling relunctant in anyway. Good luck.