(This story, in slightly different form, originally appeared in Incisive Media's Daily Business Review.)
WEST PALM BEACH, FL-Buyers fighting with Related Group over deposits on units at the developer's CityPlace South Tower failed to stop the foreclosure sale Monday. Lawyers representing the contract holders say their claims could be effectively wiped out.
The lawyers contend there would be little chance of collecting from the developer even if they are successful in their lawsuits to recover deposits on units at the failed project that Miami-based Related Group is turning over to lenders in a "friendly foreclosure." The Bank of Nova Scotia was the only bidder in the $120-million foreclosure, taking 370 unsold units at the 420-unit CityPlace building with a minimum $100 bid.
Attorneys Joseph Altschul, Jonathan Kline and Robert Cooper, who are each representing several buyers of units in the 20-story building, had tried to stop the foreclosure since last week. They asked Palm Beach Circuit Court Judge Meenu Sasser to set aside the CityPlace foreclosure judgment until they resolve their disputes with the developer.
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