Centex leaving my state (hardwood floors, granite, ceilings, cabinets)

[kcam213]

I am in the early process of building home in Centex community here in Michigan.

They are leaving Michigan!!!

Not sure if this is the place to invest $200,000 if they are not sure they will complete the community.

The sales lady said they would complete their projects... but I don't believe it. There are some communities in stage 1. Are they going to stay 10 years to complete those projects??

I have already given close to 2 grand in good faith money....

But now I have cold feet. This situation was EXACTLY why I was ambivalent about going for it. But the incentives were too great to say no (more than $50,000 with the closing cost added in).

No work has started on my lot and I have not had preconstruction meeting. I just finished picking my design choices about 3 weeks ago.

Should I walk?

Can I walk?

Will I lose my good faith money or will exentuating circumstances play some role?

What will my liability be if I walk now?
They may have started the permits... (but maybe not since this has been brewing behind the scenes for at least a couple of months... they did not come to this decision this week).
They may have started to order supplies but since my house is so early in the process, they could either use my supplies in a spec home or cancel the order and pay the cancellation fees.

I am thinking my liability is pretty low at this point... certainly not beyond my initial deposit... and with them leaving Michigan, I think I should be entitled to some of that deposit as well.

Should I contact a real estate attorney on this. I did not use a buyers agent on this deal.

[BobKovacs]

Originally Posted by kcam213

I am in the early process of building home in Centex community here in Michigan.

They are leaving Michigan!!!

Hmmm- I thought everyone was leaving Michigan

[twinmma]

We had built a home in PA with NVHomes. They too decided to leave that community b/c they were not selling. They ended up selling their plots to another developer...so the community is getting finished BUT with a very different look and feel than what we had expected. (we moved, so it doesn't involve us anymore, but old neighbors do not like the new plans)

[twinmma]

oh, and I don't know if you should walk or not. I take it you do not have a realtor representing you? This is one example of why it is so important to have a realtor on your side in new construction...you just never know what will come up!
If you don't have a realtor, maybe consult one...or a real estate attorney. Losing $2K would stink, but if it is the right thing to do for the long long run then $2K will be a drop in the bucket. Spend some money and consult someone.

[red9022]

I am a Centex Homeowner, and received the same letter. I spoke to my salesperson, and it is very straightforward.

They are continuing to build homes under construction, and warrant all homes. They are also actively selling homes. But, they are shopping their land, and if purchased by another builder or developer, will sell it.

I am not concerned. They are a national builder. My-coworker dealt with them in Columbus a year or so ago. They closed their operations there, and everything went very smoothly. They had the same 2 year warranty I have, and it was handled same as mine. Centex isn't going bankrupt---just eventually leaving Michigan. Very different than a Joe Smoe builder who goes under and can't pay his bills.

I am in a site condominium, which has a detailed master deed noting square footage requirements and architectual controls. If you don't feel comfortable with that, contact your local municipality and discuss it with them.

I asked specific questions about my neighborhood, and got answers. Ask them about your deposit. In my dealings with them, they have always "done the right thing" and acted with integrity.

They seem prepared to speak with their customers. They know the questions are out there. They will have answers.
If you are not comfortable with the answers, ask them what your options are, or tell them what you would like them to be.

I am not naive, I understand that this is the biggest investment most people make in their life. I remember the emotions I went through during the process. My best advice is ask Centex your questions, and make the best decision for you and your family.

[sbd78]

Talk to a real estate attorney.

[kcam213]

Thanks for your advice.

I think I will talk to a real estate attorney.

There are just too many variables that could go wrong...

issues with quality if most staff are pulled out of Michigan...
warranty work may be a problem...
If a new developer comes in and build multi family dwellings, or commercial, that could be a problem as well. I don't want to live down the street from group home etc.

Also, if a developer makes economy type homes.. my big "McMansion" with hardwood floors, granite counter tops, Maple cabinets, 9 foot ceilings, wired for sound, etc will never sell for what I owe. Not bad if the neighborhood holds out... but then that would be the reason that the house would not sell for what it is worth.

Just feel really sick about this... but I think I wold be sick with worry if I continue on.
I took a big chance with going with this purchase... when all indications were telling me this was not the time. I thought I could get a great deal while interest rates are still low. I picked a community near completion thinking that Centex would at least stay through this year.

They didn't last 60 days past my signing purchase agreement.

[scammed1]

Not too long ago a TV magazine show had on familes that bought into subdivisions and were left holding the bag while the builder moved on. In one case a lady bought a $450,000 (apprx) house in a new subdiv. The houses couldn't sell and the builder started selling those same homes for half. Quite a story. That may not be your case but it is happening.
You may also want to visit Homeowners Against Deficient Dwelling and Homeowners For Better Building. Both sites have extensive information on the housing industry and articles pertaining to situations such as yours.
You can contact the presidents of the organizations or get on their forums.
Both HADD and HOBB are national grassroots organizations.
Hope this helps you.

[HACKS]

Originally Posted by kcam213

I am in the early process of building home in Centex community here in Michigan.

They are leaving Michigan!!!

Not sure if this is the place to invest $200,000 if they are not sure they will complete the community.

The sales lady said they would complete their projects... but I don't believe it. There are some communities in stage 1. Are they going to stay 10 years to complete those projects??

I have already given close to 2 grand in good faith money....

But now I have cold feet. This situation was EXACTLY why I was ambivalent about going for it. But the incentives were too great to say no (more than $50,000 with the closing cost added in).

No work has started on my lot and I have not had preconstruction meeting. I just finished picking my design choices about 3 weeks ago.

Should I walk?

Can I walk?

Will I lose my good faith money or will exentuating circumstances play some role?

What will my liability be if I walk now?
They may have started the permits... (but maybe not since this has been brewing behind the scenes for at least a couple of months... they did not come to this decision this week).
They may have started to order supplies but since my house is so early in the process, they could either use my supplies in a spec home or cancel the order and pay the cancellation fees.

I am thinking my liability is pretty low at this point... certainly not beyond my initial deposit... and with them leaving Michigan, I think I should be entitled to some of that deposit as well.

Should I contact a real estate attorney on this. I did not use a buyers agent on this deal.

are you crazy leave ...run... run......

[HACKS]

you will never be happy . dont be dumb . go now eat the deposite