Did you have an Attorney review the original contract? Have your Attorney check for any clauses in the contract that may allow you to exit the contract. Did you purchase with a home close contingency as part of your offer? Do you have a financing contingency that allows you to exit the deal if you cannot obtain financing?
Without seeing the contract it's difficult to determine if you have any way out of this deal. Developers often use a "Developers contract" when selling New Construction and such contracts are always designed to be in the Developers interest rather than the buyers in situations like these.
Depending on sales within the building and the location you purchased in, you may find that prices haven't plummeted. In such a case the developer may be only too happy to see you walk away from the deal and forego your 20% deposit so that they can resell the unit (they can now sell at a discount and still make money). Alternatively, they could force you to close depending on the contract and hold you liable for the full amount, not just 20%, should you walk away.
Find out all your options and discuss them with a good Real Estate Attorney (I can recommend one that specialises in new construction buyer deals). You may find it cheaper to reduce the price of your current condo so that it sells prior to your closing date to allow you to close. A 10% loss on a $250,000 condo is a lot less than a 20% loss on a $360,000 purchase).
Feel free to contact me via my profile to discuss in more detail.
Best of Luck, Ken.
They could be more likely to renegotiate to keep the property filled rather than vacant which leaves them at risk for vandalism, etc. Also, if they own the real estate, they are paying the property taxes on it which is another expense. Be realtistic with them after you do your due diligence and see what they say. They may be in big financial trouble by now. They may want to refund your deposit due to the big headache to come. In that case, problem solved.
Your first course of action needs to be to have a conversation with your builder to explain your situation. Go in prepared with recent market information about this area, average home price, decrease in home prices, number od short sales and foreclosures etc....anything that will support your position.
The "Eckler Team"