Imagine losing a $250,000 deposit ... I didn't think this was legal!

[w¡n9Nµ7 §£@¥€r 123]

By now, Basant Kharbanda thought his family would be settled in their new home in Edison. Instead, the hotel owner is still in Minneapolis, stressed out over the dream home that has become a nightmare.

Kharbanda is one of five buyers who each gave Kara Homes deposits that averaged $250,000 last year to build luxurious homes on a picturesque swath of land along the township's northern border. The payments were made a few months before Kara filed for bankruptcy -- shattering the buyers' plans and sending them into a panic.

"It is tremendous stress, you don't know," Kharbanda said.

Fenix Investment & Development Inc. could salvage the families' dreams and finish the houses, since it was the successful bidder at the land auction ordered by the bankruptcy court last week. But before the Morristown-based developer closes on the deal, Kara Homes must persuade Edison to withdraw its plans to condemn the property and preserve it as open space.

"We can't afford to put ourselves in the position of being the property owner if we think the town is going to condemn," said Patrick O'Neill, president of Fenix. His company bid $11 million for the 27-acre parcel. Fenix wants to build a total of 19 Colonial-style homes on the site, which would sell for $1.5 million to $2 million.

Despite Edison officials' contention that preserving the wooded tract is a priority for the highly developed township, O'Neill said he hopes officials are rethinking their position.

Kara Homes is already suing Edison over its plans to condemn, arguing the township interfered with the auction and scared off other bidders. A hearing on the allegations is scheduled for Monday in Trenton before Judge Michael Kaplan in U.S. Bankruptcy Court.

If Edison persists, O'Neill argued that the township could face paying costly damages to Kara.

"The town has to be thinking, 'Do we really want to roll the dice and expose ourselves to that kind of liability?'" O'Neill said.

Mayor Jun Choi declined to comment because of the pending lawsuits, according to his spokesman, Jerry Barca.

Perry Mandarino, who is in charge of Kara's restructuring, said the firm "hopes to close on our agreement with Fenix. If not, (Kara) will pursue every avenue that exists in order to ensure that is receives its fair value for the property."

Edison received an $8.5 million grant from the Middlesex County open space trust to acquire the land. Even though the grant is far less than the amount Fenix bid, it would still be the highest per-acre amount paid by county taxpayers since the open space program began 12 years ago.

In a letter to the bankruptcy court, Choi wrote "the potential loss of the open space as wildlife habitat, buffer lands for wellhead protection and the aesthetic value of natural areas is not in the best interests" of the township's residents.

But most of the people who gave down payments to Kara are also Edison residents and they urged the township council to drop the condemnation. The buyers include three doctors and two businessmen.

When Edison initially revealed its plans to condemn the land, the buyers were contacted and told the township would return their deposits. But the buyers said their attorney later explained it would not be resolved so easily because all proceeds from the land sale belong to Kara and the bankruptcy court would decide which creditors are paid.

Kharbanda does not understand why Edison suddenly reversed itself since Kara was authorized to build the houses.

"Why allow it a year ago and now try to condemn?" he asked.

http://www.nj.com/starledger/stories/index....xml&coll=1

[Ban Hammer 13,346]

why is this in the polls section?

[w¡n9Nµ7 §£@¥€r 123]

Mistake. I've put in a request to move it to OT.

[Ban Hammer 13,346]

Mistake. I've put in a request to move it to OT.

now report to the rack for retraining

[mkg265 2]

This confirms my wish to only build one home in my life- In Albania where cash is paid then service is rendered. No ifs, ands, or buts