Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
We are closing on a house in an orleans community this month. I have spoken to the orleans rep and my realtor about this. Re the warranty, the only way owners are going to get in trouble is if the builder is filing for chapter 7. Either if they get bought out, or if they file for chapter 11, the warranty should hold. For example, GM filed for chapter 11, and they were still selling cars with warranty.
The other side of this is that there is no way anyone can feel comfortable when you hear stories like this about your builder. I am terrified too, frankly. I am waiting to see what happens the next couple of weeks - from krash's post looks like we might have some answers soon.
Finally, it all comes down to the buyer being satisfied with the house, the house passing all inspections and paying a fair price. Tough decision for sure.
We are closing on a house in an orleans community this month. I have spoken to the orleans rep and my realtor about this. Re the warranty, the only way owners are going to get in trouble is if the builder is filing for chapter 7. Either if they get bought out, or if they file for chapter 11, the warranty should hold. For example, GM filed for chapter 11, and they were still selling cars with warranty.
The other side of this is that there is no way anyone can feel comfortable when you hear stories like this about your builder. I am terrified too, frankly. I am waiting to see what happens the next couple of weeks - from krash's post looks like we might have some answers soon.
Finally, it all comes down to the buyer being satisfied with the house, the house passing all inspections and paying a fair price. Tough decision for sure.
Chapter 11 can allow the company with court approval to break all contracts.
GM CHOSE to honor warrantees to keep trust.
Also, court can turn Chapter 11 into Chapter 7 if reorg fails.
Chapter 11 can allow the company with court approval to break all contracts.
GM CHOSE to honor warrantees to keep trust.
Also, court can turn Chapter 11 into Chapter 7 if reorg fails.
Do not count on any warranty.
hmm. from what i understood gm's warranty is a pre-paid service and thus would be a liability that is honored after taxes but BEFORE the bond holders get their cut. I am not an expert in corporate tax laws, so i defer to you.
there was also an earlier post which mentions something about the first year warranty being mandated by NC law. not sure how that will work.
Just seems like if orleans is filing for chapter11, and they do break the warranty contracts, not one buyer would touch them. not much point in trying to run your business by a re org when your name is down the drain by then..
is there a place to get these details? like the nc law mandating first year waranty, if it exists?
Another thing I would like to add is that our builder was taking deposits from people in our development and in others, letting them pick their lots, houses and upgrades right up until they filed knowing it was going to happen. I know this because another one of my neighbors used to fill in at the sales offices and was asked to replace someone who was fired. But she knew the woman fired and asked what happened. She said she quit rather than take money from people when the rumors were rampant in the company about the bankruptcy. Needless to say, my neighbor didn't take the job either. In reality they were taking the deposits to pay off their creditors but it wasn't nearly enough to cover. My understanding was many of those people did not recover their deposits.
I am in no way saying Orleans is doing this as they are a much bigger builder than ours was. It is just a cautionary post.
Thanks for the posts/ experiences. I spoke to my realtor and he mentioned the March 8th meeting too. If you are planning to close on a house before that, I would strongly suggest you wait. Otherwise, we will know in a couple of weeks where Orleans is heading, and hopefully we can re evaluate then.
I guess the best option for people who are planning to close soon would be if they got bought out. Don't want to seem them in bankruptcy, or keep facing the issue of lenders extending credit for a month at a time..
Orleans Homebuilders, Inc. Files Voluntary Chapter 11 Petitions; Obtains Up to $40 Million in Anticipated New DIP Financing; All Homebuilding and Management Services to Continue Operations
This is really scary news... We actually just signed a contract with Orleans at Weldon Ridge about one month ago and put in 20,000$ deposit . I believe the construction hasn't even started yet. But we were told the targeted closing date would be June 30th. Any suggestions on what what kind of precaution actions to take? Thanks..
The construction of our house is currently in progress, 30-40% done. Is there a way we can still to get out of the contract. We are worried about the quality of rest of the construction due to insufficient funds, warranty, protection against liens and completion of community. Are there any other things that we need to be aware of.
This is really scary news... We actually just signed a contract with Orleans at Weldon Ridge about one month ago and put in 20,000$ deposit . I believe the construction hasn't even started yet. But we were told the targeted closing date would be June 30th. Any suggestions on what what kind of precaution actions to take? Thanks..
Quote:
Originally Posted by fthb22
The construction of our house is currently in progress, 30-40% done. Is there a way we can still to get out of the contract. We are worried about the quality of rest of the construction due to insufficient funds, warranty, protection against liens and completion of community. Are there any other things that we need to be aware of.
Please advise.
You both need legal counsel. You are working with legal contracts and bankruptcy.
Find a local real estate attorney for advice.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
