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Old 03-03-2009, 12:28 PM
 
Location: Visitation between Wal-Mart & Home Depot
8,309 posts, read 38,766,834 times
Reputation: 7185

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This is slightly off topic, but my wife and I had a considerable amount of store credit for returned merchandise to a baby goods store that filed for bankruptcy recently. All the money that was spent on returned items just disappeared. All company debts erased. It gave me a different perspective on people or organizations that declare bankruptcy. It's essentially stealing and there are good reasons for the stigmas attached to it, whether the filer is a corporation or an individual.

I was pretty riled about $800 returned merchandise credit. I can hardly imagine if the dollar amount was more appropriate to a house.
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Old 03-03-2009, 10:06 PM
 
Location: Houston, Texas
469 posts, read 1,484,762 times
Reputation: 295
Quote:
Originally Posted by MissDaisy View Post
understood, chris_ut....but what if the home is in frame, or blue board?? Does the builder simply walk away?...or sell the semi-completed property to another builder?? What happens to the buyers earnest $$ and/or upgrade $$ ? I would hate to think that the purchaser's $$ would be wiped out being named in the builder's BK suit...

That situation played out in 2000, when the Chrysler PT Cruiser first came out, a local dealer had for about a year collected folk's $1000 deposits, far more than his factory allocation could ever be able to accomodate, then declared BK, and named all of those poor individuals in his hearing, thus they all lost their $$....that sucked big time...and dealers like that give a big black eye to honest people in the business like me (not a dealer, just an employee, but the potential impact to reputation or speculation is just as great)...I could never help thinking he knew what he was planning all along...people don't just wake up one day and "decide" to go belly-up...these situations are at a minimum a year, two, or more in the making...

...sure glad our Conroe TX home (Village Builders) was completed last spring, though I realize that if Lennar tubes....that puts our warranties in jeopardy..though I would imagine that the warranties are in some sort of a "re-insurance" policy, not that they are any more solvent than the original builders...

Sad about David Power Builders....they really did build a beautiful home...just a bit too rich for our blood...We especially liked the DP homes in Creighton Woods, just found a better value for dollar with VB

Just wish the best of luck to all affected by David Powers' situation...
In most cases if a builder files bancruptcy during the building of the home and the individual did not negotiate to have the earnest money (deposit) placed in escrow then it is lost. I have spoken to several people lately that are out from 8-30K. I would suggest that know one does a build job right now with any of the builders. You are much better off finding a spec home that you like as you can frequently get a great deal and not put your money at risk.
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Old 03-03-2009, 10:42 PM
 
Location: Conroe, TX
684 posts, read 2,109,385 times
Reputation: 199
Quote:
Originally Posted by Jamesww View Post
In most cases if a builder files bancruptcy during the building of the home and the individual did not negotiate to have the earnest money (deposit) placed in escrow then it is lost. I have spoken to several people lately that are out from 8-30K. I would suggest that know one does a build job right now with any of the builders. You are much better off finding a spec home that you like as you can frequently get a great deal and not put your money at risk.
That is beyond horrible...the builder gets to file BK, walk away essentially, start a "new" business under a different name, and the "regular guy" trying to buy a home for his family gets sucked in, and loses 8-30k....I don't know about the rest of you, but that kind of money takes quite awhile to save....years....even in a good economy...

With all the protectionism and bailouts for corporations, banks, etc...there really should be something to protect Average Joe from being victimized by a corporation who wishes to wipe clean the slate....all at the expense-directly or not--of the taxpayer, the buck does not stop here...simply picks up a few more hitchhikers for corporate America..

I am sure alot of us individuals would like to have the same opportunity as the businessmen...inept as they are....

Alas, once again...we get to pay for the whole lot...

....I'm getting a bit cranky.....
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Old 03-04-2009, 07:54 AM
 
Location: Houston
6 posts, read 22,537 times
Reputation: 11
Default I own a David Powers Home

That is really sad news to hear. I think they are one of the best builders in Houston, and I'm a Realtor. With the economy being so bad, I expect a lot of builders not to be building right now. Why build when only some people can get a loan. You have to have excellent, and I mean excellent credit to get a loan. Let's face it, the banks just aren't lending, and with no lending, how can they build homes.
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Old 03-04-2009, 08:01 AM
 
Location: Houston, TX (Bellaire)
4,900 posts, read 13,730,475 times
Reputation: 4190
Quote:
Originally Posted by MissDaisy View Post
T
I am sure alot of us individuals would like to have the same opportunity as the businessmen...inept as they are....

Alas, once again...we get to pay for the whole lot...

....I'm getting a bit cranky.....
Actually you can declare bankruptcy and walk away from most of your debts as well.
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Old 03-04-2009, 08:08 AM
 
Location: San Antonio-Westover Hills
6,884 posts, read 20,399,779 times
Reputation: 5176
Quote:
Originally Posted by jimboburnsy View Post
This is slightly off topic, but my wife and I had a considerable amount of store credit for returned merchandise to a baby goods store that filed for bankruptcy recently. All the money that was spent on returned items just disappeared. All company debts erased. It gave me a different perspective on people or organizations that declare bankruptcy. It's essentially stealing and there are good reasons for the stigmas attached to it, whether the filer is a corporation or an individual.

I was pretty riled about $800 returned merchandise credit. I can hardly imagine if the dollar amount was more appropriate to a house.
More and more stores are doing this--for us, it was actually refusing to put the credit back on the card to which it was originally charged and issuing us a "gift card". I wish I could remember what it was! Ooooh, I was so mad! WTF, I gave you money, now I want money back, thankyouverymuch!
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Old 03-04-2009, 09:36 PM
 
Location: Conroe, TX
684 posts, read 2,109,385 times
Reputation: 199
Quote:
Originally Posted by chris_ut View Post
Actually you can declare bankruptcy and walk away from most of your debts as well.

true as that may be.....

That's not how I roll........never have, never will.....

Which is why, after all the poo is done....DH & I will be just fine...
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Old 03-05-2009, 05:45 PM
 
87 posts, read 167,370 times
Reputation: 258
Default I had a David Powers home

And no wonder they went out of business.... they certainly didn't make any money off our home. The design was fabulous and layout was gorgeous!! I loved it! But.... thank goodness we lived close to where our house was being built. Numerous problems and they had to install our granite 3 times in the kitchen due to their errors. Had to re-install brick on one side of the home...had to come back and re-install 1/2 of our kitchen /LR tile due to foundation errors....and much more I don't feel like typing. Thankfully we decided to sell when we did and move back into town. I feel sorry for our old neighbors in KW still in a 1/2 developed section of the neighborhood. I would still love to have the floor plan though!!!
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Old 03-05-2009, 11:59 PM
JL
 
8,522 posts, read 14,528,733 times
Reputation: 7936
My friend has a David Powers home. He mentioned how amazed he was about using so few stickers during his walk through when he bought it compared to his other previous homes
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Old 03-11-2009, 06:56 AM
 
3,644 posts, read 10,936,800 times
Reputation: 5514
Now, I don't know about some of the others, but John Laing Homes operates here in Colorado as well. Beautiful homes. Gorgeous.

But 3200 sq ft homes on 4400 sq ft lots? Less than 6' between homes? Tell me I'm NOT the only one who saw this coming! I saw those homes on line and couldn't get out there fast enough! We hadn't driven through the gates though when we saw that these homes had no resale value. Lots of half finished neighborhoods up here.
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