Condo Foreclosure

Hypothetical Situation –

Thinking of entering into a contract in a new development building around town. Although the building has hit the requisite sold mark for financing, there have been no closings as of yet. We understand the delays are due to issues between the sponsor and their bank that delayed the process (sponsor could not close, but now claims they can do so).

Is this a huge red flag? What happens if a condo building gets foreclosed on before all of the units are sold? Are those units that already closed SOL? Is the main risk to the value of the property, or are there other risks involved with those units?

Any advice would be greatly appreciated.