Homeowners Become Victims Of Tumbling Housing Market
Increasingly, homeowners are becoming the latest victims of the tumbling housing market. Across the U.S., a number of home builders have declared bankruptcy. In the past year, at least eight home builders have filed for bankruptcy protection, according to the National Association of Home Builders, including Levitt of Fort Lauderdale and regional builders such as New Jersey’s Kara Homes; Elliot Building Group in Pennsylvania; Neumann Homes in Illinois; and Turner-Dunn Homes in Arizona.
There’s no sure-fire way for prospective buyers to ensure that they won’t get caught up in a builder’s financial woes. Buyers’ rights in this situation vary with state law and the terms of their contract. Buyers need to have an attorney look over the sales contract before they sign it. Also, buyers need to check out the builder’s financial condition as best they can before signing any contract. That may be pretty easy, if the builder is a large, publicly traded entity like Lennar. If it’s a smaller home builder, you have to do a little more homework.
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