The home owners went balistic. What was up? Emergency meetings were held, attorneys were hired, it was upsetting to all.

What happened was that the developer GMP Homes was an early casualty to the real estate implosion and was unable to pay their contractor Norcon Construction the approximately $1.5 million owed.

This is an example of why you have title insurance. If filed properly and the construction contract performed exactly the lien could become a first mortgage on the Starpoint owners residences.

At the same time GMP was in default on the construction loan. Ten units were not sold, so the construction loan was not paid. This complicated the matter with this loan also filing foreclosure on the remaining unsold units. This is the simple version, it is actually more complicated, but not necessary to this article.

The home owners were insured against this up to now rare circumstance by First American Title Insurance Company, the title company on all of the purchases. Mortgage lenders require this to protect their first position. Where you would think the mortgage was a first mortgage, the lien rights supersede that, the lien is the first mortgage in this case.

First American, as the Starpoint home owners insurer, defended the law suit by hiring a law firm to represent the home owners. Had they lost they would have paid the claims of the Norcon lawsuit.

As what happens in many cases, the Norcon law suit was settled out of court. The Starpoint home owners recently received a letter from their attorney stating that the terms were undisclosed but they would be paying Norcon a large sum of money, the receipt thereof would free their policy holders of the cloud on thier titles.

There are about 10 Starpoint units currently for sale at marked down prices. Sure the market hurt, but units haven’t been selling in Starpoint. As an agent I understand. What agent wants to sell a home to a client with a foreclosure law suit in process? Not me and I live here! I know of few REALTORS (c) that want to put themselves or their clients in any iffy situations.

We really love our Starpoint Condo. I would say the things I like best about living here are: The underground parking garage, the elevator access to our home, some of our great neighbors, the quality of the construction, the views, the convenience of lock and leave, being in Issaquah Highlands, and having my fabulous wife Kathleen to share it with.

Larry Cragun

The entire street level of Starpoint is designated as retail. In the South Building you will find Le Chic Pet and Zeeks with space available for your business. In the North building we have MK Ballet, Alices Beauty Salon – (haircuts for men and boys included), and Luna Upscale Nail Salon.

You don’t have to live in the city to enjoy mixed use.

Over my career in real estate and mortgages I have heard many complaints about paying for mortgage insurance. Having never personally seen it pay off I could understand the concern.

Some of the owners of Starpoint have reason to challenge that concern. As the  building was completed and owners moved in it seemed like Starpoint was about done. The truth is they were unaware the developer GMP was financially cooked.

Weeks after completion the owners that had closed to that point were sued by Norcon Development, the contractor hired by GMP. In Washington lien law, properly filed mechanics liens become a first lien or first mortgage. Thus the reason lenders require a lenders title policy.

It has been a nearly two year law suit to this date. The suit is not settled, Frontier Bank the construction loan lender has sold its rights to an investment group, Liberty Capitol. Liberty has thus filed foreclosure and is claiming not only a right to the 10 unsold units owned by GMP, but to some of the units now owned by individuals.

Thus the point – First American Title has stepped up as the insurer and hired an attorney to represent the covered home owners. Should they lose the lawsuit, First American will be responsible to pay in behalf of its policy holders.

So, like all insurances, when you need it, and have it, it’s a good thing.

First American Title Building, Phoenix Arizona from Flickr & By mike_s_etc

For more information enter your password to see the post July 29, Important Notice to Starpoint Owners.

The meeting is March 31st 7:00pm to 8:30pm at Blakely Hall.

Make your voice and your choice heard.

Retail spaces are beginning to open up with many interesting businesses that will be very convenient for residents. There are still oportunities both to purchase a condo here or to lease a business location.

Starpoint is close to many parks, trails, a new elementary school and the High Street Mall (just being built), a Park n Ride and it has been announced that Swedish Hospital will build a new hospital here in Issaquah Highlands.

Issaquah Highlands and Starpoint are exciting places to be.

The more we participate, the better Starpoint will be. Meeting, March 11th, Tues at 7:00PM at Blakely Hall. Please comment on this article if you can’t be there but want something addressed. We will forward the info.  Thank you!

Kathleen

Double Clicking The Map Makes It Interactive.