With banks wooing them with money many just could not resist. Developers joined in and paid the sky for the land required for building. But the story ended with mega legal suits filed by lenders who did not reside her. The financing had been done by the outsiders. Thus mega lending ended up with mega foreclosures.

In Lee County three of the top foreclosures all tell the same tale.

For Grosse Pointe Development the debt is $340 million. For Oasis the debt is $157 million and for Paradise Preserve the loan due is $94 million.

There is no longer any money and the projects are not valued anywhere near the debts. The question is about what happened to the money. Jerry McHale a public accountant of Fort Myers said, “The money went to the fortunate guys who got out at the top of the market.” McHale is often engaged as a receiver of foreclosed units.

$54 million was paid by Paradise Preserve but the 26 storey condos, golf course and redone marina were never constructed.

There were others like Marshall Investments that got burnt. Rick McCormack, an architect did not get paid $893,000 – the value for the work he had had done for Paradise Preserve. He said that the significant problem with the plan was the timing. Getting a permit took time and meanwhile the market began to slip out of control.

Today the banks have become very wary about advancing loans but those who have been engaged to complete assignments get trapped when any project sours. For sub-contractors the best thing is to try and get paid as quickly as possible but on the other hand the developers prefer to delay and drag on negotiations.

McCormack is engaged with Gora/McGahey an architectural firm. He said that one does not want to lag behind in the work being done and on the other hand one does not want go push on ahead for fear of being beaten by competitors. He added, “If the project runs into trouble, whether financing or entitlements or whatever, it’s difficult to collect.” Thus it is timing that is the most important factor and not the land.

For example Oasis purchased 18 acres by paying $22.5 million in 2004 December. It now owes $157 million to Bank of America mostly for the cost of construction on two towers that are now vacant. Yet building high rises eats up a lot of time – it is its special feature. Related Group could not close on the purchasing until four years had passed. So it stood in line from the day of the peak to the bottom days.