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Foreclosure Watch

We don't often make it our business to announce run-of-the-mill foreclosure suits against developers. Sometimes, though, it's a really big deal. A suit against Draper & Kramer Inc., developers of the ultra-luxury Palmolive condos, qualifies on two counts: At $140M, it's one of the largest suits since the crash; and, it's highly unusual to have a foreclosure when a building is almost entirely sold out. According to the suit, only two of 95 developer units remain unsold. Considering a developer must pay back creditors before pocketing a cent, it may seem odd that this scenario managed to come about. But, as a real estate advisor tells Crain's: "Development loans not getting paid back these days arise from all kinds of different things, and cost overruns can be one of them." Getting your moneys tangled up in other projects is another. [Crain's]