Conversion is already done; thes are individual units. This is a situation where the developer has sold 30 of 50 units, but probably is still into the bank for some amount of money. The conversion was done and on the market in the summer of 2007, so the loan is probably at or beyond maturity and the bank probably is secured at a 25% or so LTV and would be only too happy to foreclose. Stuff's not moving, so it is time to hold an auction, take the bank out, and chalk one up to being at the right place at the wrong time. I'd be hapy to slurp up some of the blood running in the street if there aren't too many fellow slurpers.
Incidentally, tryan, if you want a window into what is going on in the wonderful world of condo coversion and construction financing, watch what happens with CORS. Management is very plain-spoken and tells it like it is, so you get a real good idea of exactly how much pressure the developers are under.
"All animals are equal, but some animals are more equal than others."
- George Orwell