Homebuilder-Bankruptcy.com

Just found a really interesting article which explains the ins and outs of builders going into liquidation, partly precipitated by actions of their banks. It has been quite an eventful 18 months, watching so many builders slide into default and liquidation, leaving home buyers and owners in a lurch. Anyway, if you look at the [...]

Rhodes Homes, one of the leading builders in Nevada which went into bankruptcy earlier in March this year, has requested the court to extend its exclusivity period on June 19, 2009. In Chapter 11 bankruptcies, companies are given an exclusivity period where they have the exclusive right to file and solicit votes for a reorganization [...]

For those watching the sales of Caruso Homes, note that there are residential developments affiliated with Caruso Homes which are not involved in the bankruptcy proceedings. Caruso Homes Inc provides management services to 8 residential real estate projects, generally known as the SNS/Waterford projects.
Digging deeper, we found that these projects are financed by SNSPF Interim [...]

Why should home buyers care about conflict between lenders and other institutional stakeholders in a home builder’s bankruptcy? Because it affects the issue of whether the builder would end up in liquidation and foreclosure or reorganize and fund the completion of unfinished homes.
Conflict in Foreclosure Sale

An interesting piece on conflict between institutional stakeholders appeared in [...]

How do you find a cheap home for sale in the bargain pile from financially distressed builders? Looking into bankruptcy filings, we use John Laing Homes as an example of what buyers might expect from buying from a distressed builder, should it go into bankruptcy.
Jun’09 Update: Properties on Fire Sale
John Laing Homes is undergoing impending [...]

The bankruptcy court entered an order yesterday authorizing Heritage Highgate, the bankrupt New Jersey home builder, to sell homes free and clear of lien. Nothing in the order binds the purchaser (the deposit holders) to go forward with the closing. For those of you interested in the list of Heritage Homes lots for sale, email [...]

Village Homes’ exclusivity period for filing the Chapter 11 plan was due to expire on March 6, 2009. The exclusivity period is one where the bankrupt company has the exclusive right to file the plan (as opposed to a situation where creditors can come up with competing plans). The bankrupt builder filed a motion to [...]

One of the first motions filed by Fulton Homes in its bankruptcy proceedings is the motion to sell homes in the ordinary course of business. The banks, unsecured creditors in the amount of approximately $164 million, promptly filed an objection.
The filing for this began in this manner:
Yet another home builder finds itself in a situation [...]

Two days after Mercedes Homes filed for bankruptcy, the home builder obtained interim court authorization to use lenders’ cash collateral. Like almost all cash collateral orders, this authorization was supposed to end on March 2, 2009. With March 2 behind us, Mercedes Homes had requested an extension of the use of cash collateral through April [...]

Homes for Sale by Bankrupt Builders
It is almost part of daily news now that more bankrupt builders are going to extremes to attract buyers, either through incentives or slashing prices. As reported, healthy developers are having problems selling their inventory homes, given the competition posed by foreclosure houses. While you shop around, don’t forget to [...]