Role: Bank Executive

Client: Managing Director of Special Assets Group

Business Description: Broken Condos (Southeastern, Michigan)

  • Multiple Semi Completed Condo/Site-Condo
  • 90% +/- Developed Sites
  • Unfinished or Unbuilt Vertical Construction

Critical Issues:

  • Incomplete developments
  • Missing buyer escrow deposits
  • Undedicated or unapproved infrastructure
  • Mismatched home prices in same condo association
  • Unrecorded master deed amendments or expired developer control periods
  • Angry co-owners, regulators, law enforcement and municipal inspectors

Resolution:

  • Met with all stakeholder groups individually to understand and address their concerns
  • Continued ongoing open communication and updates with all stakeholders during course of our involvement
  • Took steps to legally and practically separate Bank from defaulted developer/borrower.  Addressed Michigan Successor Liability Doctrine and successfully protected Bank
  • Corrected development engineering and construction mistakes
  • Completed unfinished development including inspections, negotiations and infrastructure dedications
  • Corrected and completed unfinished units
  • Built new spec units
  • Phased project to allow for longer build-out
  • Sold repaired and well-functioning development to new owner/developer for cash

Have a similar situation?

Fill out the form below and we’ll contact you to see how we can help.