River House - who can pay and who can't

GRAND RAPIDS, Mich. (WOOD) - Many potential buyers of River House in downtown Grand Rapids gambled their investment in a new condo would pay off. Now they are reneging on their deal to buy and the developer is forcing their hand.

A couple dozen buyers are being sued by River House because they refuse to live up to a deal they made to buy the newly built condos.

Are they backing out because they no longer think it's as good an investment or can they not afford it anymore?

That is what River House developer Robert Grooters is trying to find out. He is taking the potential buyers to court to force them to reveal their finances to see if they have the money to live up to their promise.

"What we want to do is solve the issue," Grooters says.

"We understand people fall on hard times and we understand people want to back out of their contract. So it's our job through legal means to determine who really can come to the table and close and who really can't," said Kristen Myers-Chatman, River House marketing director.

The developer says for those who can't, like Sharon Sanders who 24 Hour News 8 talked to Thursday night, he'd be willing to sit down and try to work something out, but he needs the legal proof first.

"This is my community. Problems come up, we work together to try to solve those problems and get on with it. We want everyone to be successful," said Grooters.

Grand Rapids attorney Thomas Kuiper says he is contacting condo buyers who are being sued by Grooters' company, Bridgewater Condos LLC.

"Certain clients lost jobs, early retirement. They told Bridgewater. They can't buy them anymore," said Kuiper, who is representing five or six buyers so far.

What about those who have the means but are not intending to close?

"There are individuals I'm sure like that. And that's going to be a very significant legal issue," said Kuiper.

Those being sued signed a purchase agreement in 2006, promising to close on their River House condo when construction was complete. Grooters took those contracts to the bank to prove the project was viable and to get the money to build. The condo owners owe him and he owes the bank.

"Same thing with the banks right on down the line. Everybody's involved. Even the city of Grand Rapids. If we can't lease it out or can't sell it then we won't get the taxes to help support the town," Grooters said.

"I recognize that they are in a predicament, and that's what lawsuits are made out of. Two different sides being in difficult positions and that's where the law comes in," Kuiper said.

River House has 207 condos. Fifty-two are sold and some people are living in the building.

But the majority of the units are either still empty or tied up in court.