Anderson Homes filed to seek protection from creditors on Monday. There are actually a total of four companies involved, in addition to Anderson Homes. Its subsidiary, Vanguard Homes and two land developers, Bridgewater Land Resource and Land Resource Group of Raleigh were included in the filing.
The word is that Anderson Homes and its subsidiaries plan to work their way towards an eventual reemergence from bankruptcy in about a year or so. Of course, the actual outcome of that may depend heavily on the local real estate market.
Anderson Homes joins several other Triangle area home builders who have been hard hit by the recent slow housing market. St Lawrence Homes filed Chapter 11 only a little more than a month ago.
What does this mean for the real estate market?
I really hate to see this happen. I’ve sold homes by both St Lawrence and Anderson in the past and they both build great products. They are good builders who do their very best to do the right things for their customers. When the market comes back we will need these guys. The last thing we want to experience is an upturn in buyer demand paired with a shortage in the supply of new homes.
How will this impact buyers who recently purchased?
I asked some closing attorneys what impact they thought these bankruptcies might have on warranties for homes recently sold. The general consensus was that depending on the type of bankruptcy, the builders may very well be able to service existing warranty claims. I wonder how that will work if they owe unpaid debts to their subcontractors, who many times do the warranty work for builders? If you have recently purchased a home from either of these companies, you may want to give their respective warranty departments a call and ask how you will be affected.
