When a Builder Goes into Foreclosure…

A Nice Subdivision in Nashville Boasts THREE different builders.  One Builder is now going bankrupt.  My Client, a super nice guy who has been looking for several months has found his dream home!  Here's the catch:

It's one of the Model Homes of this Bankrupt Builder!

I have heard nightmare stories about this Builder – how he regularly goes into Bankruptcy under the Umbrella of his Parent company without really hurting the Parent company – only dismantling the Child company.  Did I explain that correctly?

spring clipart rain umbrellaSo he stays nice and dry and safe while taking advantage of those who purchase his homes and making loads of money to boot…

Back to my Buyer now:

Since I knew we would be dealing with this Builder, I did all the necessary research to find out exactly the situation they (the Child Company) were in. 

We put the offer in on the Model Home, knowing that this was going to be a sticky situation, but that my Buyer may still end up with his Dream House.

No response.  Have heard apologies from the Listing Agent as to why they have not responded.  She says it is not necessary to extend the offer reply date even though it has elapsed because THAT WON'T MATTER!

So I am expected to just sit back and wait on them.  I have heard a lot about this in bank-owned deals (think there is even a featured blog on it today!), but am I supposed to also expect these delays and hold-ups from a “Bankrupt Builder” as well? 

Yellow Question Mark

I grow weary of waiting for these builders and banks to give the same respect to an offer and a contract as we are all expected to!