September 2, 2010 - It has been a long wait but buyers who signed pre-construction contracts for Chicago condos at Lexington Park may finally have some resoultion, although probably not the ending they would have liked. This Chicago real estate development has been the victim of lackluster sales due to the faltering housing market as well as its primary lender failing and being taken over by Starwood Capital and ST Residential, who have other plans for the project.
According to reports from buyers, ST Residential has sent email notices that buyers will have 95% of their deposit money returned plus interest. The other 5% of the earnest money is being held as a “processing fee.” Buyers who are satisfied with this offer have 30 days to contact ST and agree to the terms.
Whatever interest is included isn’t likely to add up to the $8,000 first time homebuyer tax credit that buyers missed out on while waiting to close on their condos at Lexington Park, not to mention the 5% of their depost that won’t be refunded.
Buyers may have a right to legal recourse in this instance. In any case, it’s an example of why you should always try to purchase Chicago condos from a developer with a proven track record and read your sales contract thoroughly.
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