I am having a problem with Blue Moon Capital, LLC in that I made a deposit for $5,000 on June 20 so I could buy a house in Pittsburg for $100k and it should be worth $125k after it was rehabbed by Blue Moon Capital no later than July 20 (their deadline) but it is now December and they have missed their deadline and they will not refund my deposit. I signed a disclosure form saying that my deposit was not refundable but the contract says it may not be refundable and the contract has deadlines to be met by Blue Moon but since Blue Moon did not meet their deadlines in that they did not provide me the rehabbed house we agreed upon, I think the contract has lapsed and they should refund my deposit.
The president or owner of the company, Bob Lemon. Seems to feel that he does not have to live up to any deadlines and he can do the rehab any time he wants to and when he does and then presents me with a house sometime in the future, if I do not buy it, I lose my deposit. This does not seem fair to me and I wonder if this is happening to anyone else?
I am sure that this company has done many such deals in the past and if anyone did not accept a property they agreed on when it was rehabbed in the past and on time, the investor would lose his deposit if he did not accept the property. This does not bother me but when Blue Moon for whatever reason does not meet its own deadlines, I do not see how they can refuse to give back my $5,000 deposit. I will probably lose my $5,000 because Bob says my only recourse it to go to mediation in Denver and then if he does not agree to give me my $5,000 (which I am sure he would not agree to do) it would cost me more money and time than it is worth and then I would have to sue him in court in Denver, hire a lawyer, etc. And again it seems that it would cost me more than the $5,000.
So it seems to me that Bob wins and I lose. Bob says he cannot give me back my deposit because he has paid a salesman who he later fired and then he fired the next one who was assigned to my account and he also says he has spent additional money getting documents ready for me to sign if and when he ever does the rehap on the property I selected in Pittsburgh even though the deposit was supposed to be in a trust: (2 a in the contract states: THIS DEPOSIT MAY BECOME TOTALLY NON-REFUNDABLE. Deposit to be held in trust by Blue Moon Capital, LLC). If anyone has any suggestions as to what I can do to get my deposit back, I would appreciate hearing from you. If anyone else is now having the same or similar problem, I would like to hear from you. It is a shame that a 72 year old person like myself cannot enter into a decent business dealing with a company and not get a fair shake when they cannot live up to what they promised to do. How long can a company like Blue Moon live off deposits for unsuspecting people like me?
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