If Your Developer Defaults

If you have purchased a unit in a building in which the developer becomes involved in a foreclosure action or defaults, check out the article by David Mack in Sunday's Chicago Sun-Times. In essence, the article concludes:

"Buyers who have closed on their units are protected against legal action by lenders that foreclose on defaulting developers. Those who have not closed would not be so fortunate. Their earnest money may be at risk, since they do not have title insurance protection. Unless the developer escrowed their deposits, which is doubtful, their money is at risk."