Thursday, January 03, 2008

Home buyers out of luck in home builder bankruptcy


NYT:
Their builder is Levitt & Sons, a unit of the Levitt Corporation, which ran out of cash in October and declared bankruptcy in November. All work on this planned 460-home development for retirees, grandly named Seasons at Prince Creek West, has ceased. The Levitt employees were laid off, the subcontractors put down their tools, and the Costanzos found themselves in limbo.

The collapse of Levitt, the first big home builder to fail in the current slump, illustrates how the turmoil in real estate is spreading far beyond subprime borrowers who cannot pay their mortgages. Levitt had a fabled brand, decades of experience and enthusiastic customers with good credit, but none of that was enough to save it.
I wouldn't be buying houses now unless they were complete. Actually, I wouldn't be buying houses now. Prices are still coming down.

More on the home market and the economy - even people with good credit are getting foreclosed and the housing market hasn't reached bottom.

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