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Fulton Homes files Chapter 11

By Andrew Monaghan

Real Estate Agent with The Monaghan Group DRE #BR526609000

January 27, 2009 01:45 PM

On arriving home this evening i was shocked to see that Fulton Homes a mainstay builder in the Phoenix area for many years, As recently as last week they were saying that they were in good shape. The first question that comes to mind is where are the buyers with earnest deposits down on home sthat has already been released to the builder and what about the homes that are not already finished?

What will this mean for the Phoenix Area, tehre willbe fewer builders which will lead to fewer choices and will there be more to come.

http://www.bizjournals.com/phoenix/stories/2009/01/26/daily41.html

Andrew Monaghan

The Monaghan Group

Keller Williams Professional Partners

602-308-4660 ext 203

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Sean Carroll

Tom Chambers Properties - Chandler, AZ

I don't believe that many of the homebuilders are competing well enough with the resale market today. Fulton, as an example, has a community down the road from our house in Ocotillo. When we bought our home a few months back, it would have cost us $200,000 more to find something comparable at the Fulton community. Our builder was Engle, and when our home was built, they were considered the #1 builder in the area.

Jan 27, 2009 02:03 PM

Ted Jernigan

Ebby Halliday Real Estate - McKinney, TX

This morning the paper here in North Texas had a story about Mercedes Homes filing Chapter 11. We have also had Wall Homes file chapter 11, Both say that they will continue building while reorganizing. The difficulty with that is banks may be reluctant to make interim loans. We have also had a rash of chapter 7 filings. I believe that Scott properties is from out your way. They abandoned two subdivisions here and a town home community. I don't know what happened to them. Word on the street is that they returned to Phoenix. We have had at least one builder cease operations here, but no word on what is happening to them. We have a client with a build job with a builder that has stopped operations. The builder had 34 homes under construction as build jobs or spec homes. It is not clear what will happen to deposits on build jobs and partially finished homes. Finished spec homes will be sold by the banks but the buyer will get no warranty. All of these companies blame some of their problem on the fact that banks will not make interim loans. The builders don't have money to finance construction. Where was our bailout money when we needed it?

Jan 27, 2009 02:24 PM

Troy Erickson AZ Realtor (602) 295-6807

HomeSmart - Chandler, AZ

Your Chandler, Ahwatukee, and East Valley Realtor

Andrew, I heard this information on the news last night. It seems as though nobody is beyond struggle in this tough economy. It's unfortunate in some aspects, as I believe Ira Fulton has donated tens of millions, if not hundreds of millions of dollars to worthy causes.

Jan 28, 2009 06:15 AM

Doreen McPherson

Homesmart ~ Scottsdale ~ Tempe - Tempe, AZ

Phoenix Arizona Real Estate ~

This really makes me sad. I hated to hear when Dave Brown had to call it quits, too.

Jan 29, 2009 04:32 PM

On another note, congratulations on your Oscar Gary award nomination! Maybe we'll get the chance to meet at the ceremony.

Jan 29, 2009 04:34 PM

The Monaghan Group - Glendale, AZ

CRS, GRI, EPro Associate Broker

Doreen,

Thank you for the compliment, i will be there and im looking forward to meeting you too.

Jan 30, 2009 01:05 AM

Chuck Willman

Chuck Willman - Alpine, UT

NewHouseUtah.com

As Sean said- Fulton just couldn't compete on price... which is the sad reality of this market. I love new homes; I used to spend a great deal of time keeping up to date on what each builder had to offer. Now I have to think in a different light- which builder has staying power... that's an even tougher exercise.

Jan 30, 2009 12:00 PM

Its sad to see what is happening, Fulton built a solid product throughout the valley.

I do see in todays newspaper that the saled and marketing arm is Not in chapter 11.

Jan 31, 2009 02:50 AM

Mike Klijanowicz

Cummings & Co. Realtors - Perry Hall, MD

Associate Broker @ Cummings & Co. Realtors

GO CARDINALS! GO CARDINALS, GO CARDINALS! Beat those damn steelers...

Jan 31, 2009 11:38 AM

Sandra Paulow

Aspen Properties, Inc. - Pinetop Lakeside, AZ

REALTOR, Associate Broker, GRI, SFR

Reminds me of the 80's when the S & L's went bust. The builders got in line right after them.

Feb 04, 2009 11:06 AM

Anonymous

Adria

The bankruptcy court has given authorization for bankrupt Fulton Homes to continue constructing and selling homes free and clear of liens. This is a good step towards the builder working towards reorganization. Of course, there may be many pitfalls, not to mention acrimony – the banks are unsecured creditors and, in recent filings, they have blamed Fulton Homes for obstructing them in collateralizing the debt.

Mar 09, 2009 05:57 PM

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Fulton Homes files Chapter 11

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