Homebuilder-Bankruptcy.com

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.

It is typical in the home building industry that home builders provide their buyers with warranties for replacing or repairing defects or other components in the new residential units. However, with a rising number of home builders going into bankruptcy, a pressing issue is: what happens to these warranties if the builder subsequently files for [...]

Heritage Highgate and Heritage Residential (both filed for Chapter 11 in Jan’09) stated that they have offered and continued to offer all home buyers warranties. They would fund all warranty items arising in the initial one year period following closing and, beyond that, a national warranty company steps in.
The warranty expense has also been included [...]

The court has authorized Mercedes Homes to continue to honor obligations related to Customer Programs, including warranty claims. Two limitations:
First, it is not obligated to do so.
Second, Mercedes Homes cannot spend more than 1% of a home’s final sale price on warranty claims.
Take a look at our earlier post on the topic of [...]

Dunmore Homes revealed in its Disclosure Statement that it had significant contingent liabilities, including homeowner warranty obligations. Some of these warranties were insured by Premier Indemnity Co, but homeowners would claim directly against the home builder. There were about 150 homes covered by this kind of warranties. Note, however, that Dunmore Homes owed approximately $700,000 [...]