Builder Going Bankruptcy?

[KMFlyguy]

Talked to my builder yesterday. We are building across the street from the Lakeshore lots, and currently have a lake view since there is nothing on the lot across the street. It looks like we will continue to have a view of the lake, as they haven't sold very many of the lake front lots yet. In fact, he said Engle only has 3 active lakeshore lots, with another pending. If the bank pulls the plug on Engle, those lots will be empty for a long time. Ugh.

As far as our deposit being moved into escrow, Engle is dragging it's feet. They waited a whole week before submitting the paperwork to the main office. Now it will take another 2-3 weeks to transfer the money into escrow with Suntrust. Guess I just need to have faith that the bank doesn't pull the plug. :-)

[oldstarfish]

KMFlyguy, Did they, at least, give you a copy of the signed paperwork (i.e. the escrow addendum)? They took the addendum with my signature on it a week ago. No feedback so far.

[KMFlyguy]

No Oldstarfish, no copy of the addendum yet. She said it will be back in her hands in 2-3 weeks.

[KMFlyguy]

This was posted on the other topic about Live Oak Reserve by kmgoodwin50. Thought it should also be posted here:

>>>I have contacted Engle, and am no longer concerned, for the most part. THEY suggested I put my money in escrow to alleviate any concern I might have. (I took care of the paperwork to get that done yesterday.) I was told that even if they do Chapter 11, and that was still a big "if", they will keep everything in their Orlando division running. Why? They own all the land for the developements outright, there. And they are still making money on their homes. Other land deals they had aquired when they bought another large homebuilder had not been handled well, and all that excess land was what was hurting them financianlly. (Besides the obvious slow down in sales.) Apparently it was their attempting to "renegoitiate" these land deals that led to the story in the media about them being in trouble.

I was also told that they are, indeed, laying off 75% of their workforce this coming Friday as part of their restructuring. But they HAVE bank backing and financing to continue building and that is what they are planning to do. I was also told they have changed the date for ground-breaking for my home until January, which is just fine with me. (Actually, preferable!)

While they may be going off the NYSE, they will be back on the NASDAQ, which is where they were for 12 years before going to the NYSE, anyway.

I don't believe they will be shutting their doors....just getting a lot smaller. Perhaps spinning off from their TOUSA parent company and becoming their own entity.

And someone mentioned a concern about the contractors doing shoty work...I think quite the opposite! They are going to be using only their most reliable and best crews now, not anyone who can swing a hammer to build these homes. I am currently in a house built in the frenzy of 2005, and the tile guys who did my house were basically just pulled off the street just to get my house done!! Not to mention one of my concrete walls blowing down while being built! The subs were awful then! They would hire any warm body with no skill, because they couldn't build houses fast enough.

I intend to keep a close eye on this, of course, but I am confident for the time being....

Hopefully, Your Future Live Oak Neighboor<<<

[oldstarfish]

Engle Homes closes Heritage Place sales office in DeLand - The DeLand-Deltona Beacon (broken link)
I feel sad for the buyers/residents there. It seems that the fat-trimming process has started. Dunno what message this would pass to the rest of the customers. Maybe good. Maybe bad.
I just hope my deposit will be transferred ASAP.

[bondpro]

Many developers are required to post a subdivision bond (see: Subdivision Bonds - Surety Bond Types) prior to starting work. Unfortunately, these bonds only guarantee completion of the public propery (e.g. sewers, sidewalks, etc.). Therefore, even if a surety bond is in place, it will be of no help.

I know that isn't very helpful, but wanted to let you know that a bond is not something that you should look into for recouping your losses.