Developer is cancelling contract, I might lose my money???

I recently purchased the contract to a condo being built in a complex in Miami, from the previous contract holder. It is close to being finished, however the developer had to declare bankruptcy in order to attain the funds needed to complete the project.

Because years have passed since the contract was first issued, the value of the land has risen dramatically. Apparently under bankruptcy law, the developer is allowed to cancel the original contracts and sell new one's at the higher prices in order to pay off their lenders. Supposedly it is not common practice to cancel all of the contracts issued, but I would think that a developer would be inclined to cancel those that sold for a lot less than what they could get for them now.

My problem is that I bought my contract from someone who had purchased it before me. I don't know what they paid for it, but I can only assume that it was less than what I paid them.

What I'm wondering amongst other things is this:

Will my contract not only be cancelled, but will I only get back the amount the first buyer paid the developer? Will I lose the difference of what I paid the previous contract owner and what he paid the developer originally?

In other words, did the person I bought the contract from just make a profit off of nothing? Do I have any legal recourse or am I only entitled to the original amount the very first buyer paid for the property? Would I get back all of the money I put into it? And, if I only get back the amount that the contract first sold for, do I have a claim against the person I bought it from since he made a profit off of something that was never completed?

Any help or advice would be tremendously appreciated. Thanks for taking the time to read this.

Sincerely,

Dazed and Confused

[divgradcurl]

You should be discussing this with a local attorney who can review all of the facts, along with any documents you might have.

Thanks for the concern, I am indeed talking with a lawyer now. But I could always use some unbiased advice and new opinions. But I certainly do appriciate the info.

[HomeGuru]

Originally Posted by divgradcurl

You should be discussing this with a local attorney who can review all of the facts, along with any documents you might have.

**A: I agree.