Failed Condo Conversion Leaves 35 Buyers Stranded As Remaining Unsold Apartments In 162-Unit Building Fall To Foreclosure

In Kenosha, Wisconsin, the Kenosha News reports:

• When Angela and Adam Haut moved from California to Kenosha two years ago, they were thrilled to find the world of Midwestern property values. “We were excited that we could finally buy our own home,” Angela said.

• Now the couple, along with more than 30 neighbors, are worried that their investment is slipping away after the condominium complex where they bought their home was caught up in the foreclosure crisis. “We feel like we’re stuck,” she said. [...] Of the 162 individual units in the Regal Pointe development, just 35 had been sold to private owners.

After the condo converter fell into default on a $12.9 million mortgage secured by the remaining unsold units, the lender unloaded its mortgage loan to a real estate investor, who then foreclosed and took title to the unsold apartments, acquiring the controlling interest in the entire complex in the process.

For more, see Condos vs. Apartments (Housing slump hits home as Regal Pointe changes hands, focus).