Bankruptcy Filing May End Condo Buyers' Chance Of Recovering Money

The developers of an unfinished condo project in uptown Charlotte which filed for bankruptcy told Channel 9 Eyewitness News on Tuesday that people who paid down payments for homes may not get any of their money back.

Flaherty and Collins's Charlotte arm, Charlotte FC, was developing 210 Trade but it filed Chapter Seven. It has to sell what it can to pay as many people as it can.

According to court documents, the company has about $197,000 in assets but owes more than $52 million.

Charlotte FC listed everyone it owes and the dollar figures.

People put down $20,000; $50,000; even $80,000 on condos. A local builder spent more than $6 million on the project.

We spent Tuesday night trying to figure out whether anyone will get their money back. It looks like they won't. Flaherty and Collins told us "...the likelihood of such a recovery is very slim."

We showed the paperwork to local bankruptcy attorney Richard Mitchell, who is not involved with this case. He said buyers can usually get their money back if it's been put into escrow.

We later found out that money from buyers at 210 Trade probably was not put into escrow.

Mitchell said it was like playing "Russian roulette."

One condo buyer, James Schad, said, "Once I hear they're filing bankruptcy, that's that. You know it's over."