Homebuilder-Bankruptcy.com

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.
*For up-to-date information, download property descriptions & valuations in Quarterly Reports on Properties [...]

John Laing Homes’s CRO declared that the expected rate of return on investment on distressed homes is around 18-20% and that such residential properties are routinely sold in bulk to speculators at 20-25 cents on the dollar.

Not all secured creditors are made equal. Similarly, the position of secured creditors holding mechanics & materialmen liens may not be as favorable as that of first lien lenders.
A couple of  lessons which we can draw from the bankruptcy proceedings of Suncrest (a builder in Utah) are:
- Mechanics & materialmen liens might be primed by [...]