A reliable source alleges, the developer at a condominium development located in Chicago’s South Loop, is now returning earnest money but NO CONDO! After an extremely long wait, the buyers received a letter, via email, saying the new owners are returning earnest money, but with a catch. In short, they will receive only 95% of their 5% deposit plus interest, but only if they decide within 30-days and sign a confidentiality agreement. They also are calling it a “settlement agreement”, implying they are doing them a” favor” by returning their money.

After waiting one to four years, for their dream home, this seems like no consolation-prize. But it appears to be a sign of the times. The Developer was forced out when the economy tanked, and the bank went under. Assets were quickly snapped up by an investment company, with a sweet deal made with the FDIC. After a year of waiting to hear what would happen next, the buyers missed the original date of the first-time buyer program, extended their leases, and awaited an update. Nothing…no letter, no call, no response to requests for updates, complete silence.

Although we all know the market has been no picnic, it seems like there is a more sensitive way to handle these types of situations. It is hardship enough, when you have to put your life on hold for a home, but to receive a letter in an email, adds insult to injury. What do you think? What would you do?