Hello, Lawsuits
A legal battle between a developer and investors has resulted in a nightmare scenario for some buyers at the Hello Living condo complex on the Crown Heights-Prospect Heights border, the Times reports. The project’s developer, Eli Karp, is being sued by investors who allege he stole money from the project and sold units without their…
A legal battle between a developer and investors has resulted in a nightmare scenario for some buyers at the Hello Living condo complex on the Crown Heights-Prospect Heights border, the Times reports. The project’s developer, Eli Karp, is being sued by investors who allege he stole money from the project and sold units without their permission. For his part, Karp says the investors want the properties to fall into foreclosure so they can turn around and buy them on the cheap. The lawsuits have doomed closings for a couple would-be buyers because banks have pulled out of their mortgage commitments. Other contract-holders, meanwhile, face the prospect of losing their savings: “‘For most of us, this is our first purchase, and it’s most of our life savings,’ said Jennifer DiFiglia, who has a contract with her husband on a $525,000 two-bedroom. Her deposit remains tied up in litigation, and if she cannot close, she could lose thousands of dollars in legal fees and tax penalties for withdrawing retirement money. ‘This isn’t a building filled with people working at hedge funds,’ she added.”
Families See a Utopia Turn Into an Ugly Legal Fight [NY Times] GMAP
Say Hello to More Hello Living [Brownstoner]
Checking In On Hello Living [Brownstoner]
Development Watch: Pacific Blue East [Brownstoner]
fine they aren’t people working at hedge funds just bankers and lawyers.
This happened to friends of mine; they were at the closing when the Title company called about the lawsuit. They are still trying to get their deposit back.
DIBS: much as I may take some advantage of money funds and financial instruments, you must see that shuffling money around, taking advantage of loopholes, controlling the lawmaking system, making robber-baron profits, paying unconscionable bonuses and, generally, desperately gaming the financial system is hardly something to be proud of (not you, personally, the industry as a whole. 😉
they need to call Help Me Howard!!!
*rob*
Why can’t they get their deposit back? If the developer is unable to complete the deal, the deposits should be refunded. I think a timely intervention from the AG would move things along, and then the investors and developers can duke it out.
while im not a fan of the banking industry, per se, her comment just reeked of jealousy. someone needs to tell her that jealousy is a stinky perfume.
*rob*
rob comes to the aid of the hedge fund community.
Hell freezes over.
I neeed to go buy a lottery ticket.
Some of my best friends work at hedge funds. Many of us are very nice, fine upstandiny and tax-paying people. I don’t understand the hate!
quote:
‘This isn’t a building filled with people working at hedge funds,’ she added.”
oh stfu lady
*rob*
She knew DIBS would be reading this on brownstoner and got her jibe in early.