Levitt & Sons files for bankruptcy
A SRES (Senior Real Estate Specialist) told me that she knew of three couple who had put down 10% (about $35,000 each) on homes at Seasons at Lake Lanier Georgia. They reporterly are having trouble getting their money back after Levitt file for bankurptcy and shut down. Surely you would think they would be the first to eventually get paid out of the process, if any. Also wouldn’t the Georgia Real Estate Commission cover this from their $600,000 fund per person. I know it was a development company but surely they had a real estate license, don’t you think? Anyone know anything new on this Levitt situation, please leave a reply.
What about the other Active Adult home builders, like Pulte Del Webb, Centex Corp., DR Horton Inc., Lennar Corp. and Toll Brothers Inc. I would think they would all be solid, but I though that about Levitt also.
This problem appeared in public last year, when people who tried to sell their Levitt built homes discovered liens wer on their property due to Levitt’s failure to pay suppliers. Sadly, the homeowner deposits will be among the last to be paid, meaning they will probably get nothing back. Lienholders and other secure creditors will be among the first to be paid from Levitt’s funds. The articles we have read do not mention the GREC as a source of funds for this purpose. I met with a guy who had made his deposit at Levitt’s Seasons community in Canton, and he is now buying a home at Del Webb’s Village at Deaton Creek in Hoschton, GA.
Comment by Frank C — December 27, 2007 @ 3:16 pm