Arizona Home Builders in Financial Trouble - August 19,2008 List

Susie- I know... I've had the same feeling.

Pam- It's a disclosure thing. Of the hundreds of new home communities these are they that are either in or are entering a liquidation phase.

Teri- I had the same dilemma... post or report. I don't know how many would find it on their own. I hadn't realized that you had posted it also or I would have let yours stand alone.

Doreen- I agree... the list is a little bit strange in parts. For location, some of them have a county; others have a state and then some list a builder location as opposed to a subdivision.

Cynthia- This is a tough one. In Arizona much of the home sales market is tied to the builders. People will ask me "what did the builder to wrong?" and my answer is simple, "they did business in a market that changed dramatically." Some like to say that there was greed and overbuilding and easy loans and blah blah blah. Fact is there are market forces at work and this correction is dramatic. While customers were demanding more homes and builders worked hard to satisfy demand the market took a turn that caught many off guard. There are some great builders on this list. I regret to see them in this position. Fortunately there are buyers for many of these properties... and I don't mean the first time home buyer. I work with investors who are purchasing companies and subdivisions; reworking the financing and springing back into business. It's short sales on a larger scale.

Debra- It appears to be long but the percentage is close to that of foreclosures. There are still many hundreds of subdivisions that are performing.

Gail- I see you've discovered the essence of this. There are builders in a foreclosure state just as there are homeowners in the same predicament. The market is repairing itself- which is how it has always worked.

Kent- You are correct. This does not include a few of the builders who have found new money or have already found new partners or purchasers.

Rich- I have a great deal of sympathy for the builders. Their misfortune is that the market is bigger than any single builder's market plan. It's very hard to compete with these new margins.

Jack- Thanks for the link. It does have one of those "this is odd" qualities to it. The list contains names of builders whose misfortunes have, for the most part, already been published. Some- less so. My take on the department's motive is this: they're hoping to protect the public. Anyone who purchases from a builder who is in a short sale or pre-foreclosure position will most likely be finding their warranties handled by the registrar of contractors. Also, this may be a way to entice investors to buy out these builders. I'm working with a few buyers right now- as we pursue the purchase of a few troubled properties.