River House sues potential tenants

GRAND RAPIDS, Mich. (WOOD) - The owners of the tallest all-residential building in the state -- a building that towers 34 stories into the downtown Grand Rapids skyline -- is now suing people who say they can't afford to move in.

Documents obtained by 24 Hour News 8 reveal 18 families we found so far who are being sued by River House Condominiums. There are believed to be more. River House attorney Curtis Rypma says they're reviewing "quite a few" additional cases for possible lawsuits.

River House began filing the suits in January and February. Some people were served as recently as this week.

River House is trying to prevent the potential buyers from backing out of agreements they signed in 2006, to purchase the condos. It's also seeking money damages. Nearly three years after signing the promissory contract, many of the families say they can't go through with the deal.

River House is the sister tower to Bridgewater Place on the banks of the Grand River in downtown Grand Rapids. There are 207 luxury units, but only 52 are sold. There are many that were supposed to be closed on, but have not.

River House's Curtis Rypma told 24 Hour News 8, "We consider these to be binding purchase agreements and the time to get out of them has already lapsed. We've had some discussions (with buyers) and are open to discussion, but we decided to move ahead (with legal action)."

24 Hour News 8 spoke with a half dozen families who are being sued. They told us they can't go through with their purchases because they have either lost their jobs, moved out of state to get a new one, can't sell their own homes, and the condos they intended to buy are no longer worth the money they originally agreed to pay for them.

Some told us their condos were priced between $200-$300,000 and that they forfeited their earnest deposit, which was 3 percent of the purchase price. They fear they could be on the hook for much more.

One woman who's being sued, Sharon Sanders, said when she signed the purchase agreement to buy the River House Condo in 2006 she was pre-approved for a mortgage. She immediately put her Kentwood home up for sale. Two years later, it still hadn't sold but the value dropped so she took it off the market.

Sanders told 24 Hour News 8 six months ago she became a reluctant retiree, feeling forced to take a buyout from General Motors after working there for 30 years. She added, her income has now declined by two thirds.

Sanders said when River House pressured her to close on her condo in December she asked for an extension that cost several thousand dollars a month. She then put her condo up for sale but couldn't sell it.

She said she went to three banks to get a mortgage but can't qualify. She lost her $10,000 earnest deposit on the condo, and on Tuesday was served notice of the lawsuit against her.

Sanders told us the lawsuit frightens her. She is scared she could lose everything and become homeless.

24 Hour News 8 obtained a letter written by a Grand Rapids lawyer who is contacting people who are being sued. The attorney is trying to get them to "band together and share some of the costs of researching, analyzing, and defending each case." In the letter, he advises each of them that they have only three or four weeks to respond to the court summons they all received.

River House attorney Curtis Rypma told 24 Hour News 8 condos are being closed on and that there are several in line to be purchased. He added residents have been living in the building for a few months.