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 [...]

“Many are teetering on the edge,” said Adria Huang, research director at the New York-based Downturn Analyst, which reports on homebuilder and real estate defaults, “and the general consensus is that there are likely to be more closings … in the near future.”
Often, when a builder goes out of business or files for bankruptcy, it [...]

According to the budget filed in court by the developer of the Mosaic condos (Almeda North Tower), the developer had HOA deficits of approximately $100,000 and $90,000 in January and February 2009, respectively. The main reason for the deficit is its inability to ramp up sale of condominium units such that the total monthly operational [...]

A group of deposit holders are currently seeking summary judgment against Key Developers (the original developer of the Place at Channelside). They are alleging materially adverse modifications to the condo circular and claiming a refund of their deposits. These deposits are held in escrow accounts, pending the dispute. In earlier court filings, Key Developer asserted [...]

As Vision Bank moved to have the Shores of Panama assets sold to a new company, home owners and purchasers should be aware that, in the sale motion, the bank stated that the sale would be free and clear of encumbrances including contracts related to beach services, spa massage, kids activities, food and beverages, landscaping, [...]

One thing that home owners should note when there are multiple HOAs suing the builder for construction defects: Are there enough insurance proceeds for everyone in the game of bringing claims?
This issue has cropped up in Legend Homes’ bankruptcy. Remember our post on FountainCourt HOA gets $8.8M settlement from Legend Homes? Madison Heights COA just [...]

Legend Homes (aka Matrix Development Corp) just filed a motion in court regarding its settlement with the FountainCourt HOA. In November 2006, the FountainCourt HOA sent Legend Homes a Notice of Defects alleging 12 construction defects. This was followed by a supplemental Notice of Defects alleging another 12 defects.
The FountainCourt HOA’s complaint alleged damages in [...]

A 9/24/08 declaration by Timberland Bank in the Heritage Homes’ bankruptcy revealed the state of the unfinished lots at 3014 1461H Ave. Ct. E, Sumner, WA 98390. Prior to the bankruptcy, the bank had extended a builder construction loan to Heritage Homes.
The declaration stated that:
“On August 27, 2008 I visited the subject properties and found [...]

If you are persuaded to close a home sale by incentives offered by the builder, including the Punctual Payment Program, take a look at what has happened for buyers from PFP Holdings and their subsidiaries.
A recent motion filed in the case for PFP Holdings/Trend Homes/Classic Communities stated that the builders had been unable to honor [...]