The Fort Lauderdale based home builder Levitt and Sons who is the 50th largest home builder in the country filed for chapter 11 bankruptcy protection in Broward county on November 9, 2007 with assets under $1 million and debts totaling over $100 million. Levitt recently defaulted on loans of $300 million from Bank of America and Wachovia according to SEC filings. They are holding about $18 million in deposits from over 600 customers who have no idea if their home will ever be built and whether or not the they will ever see their deposits again.
Currently Levitt and Sons is building in the Cascades at Groveland and Hartwood Reserve in the Clermont area and Jessup’s Reserve in Winter Springs. Their completed communities in Central Florida include Summit Greens in Clermont, Avalon Park in SE Orlando, and Summerport in Windermere. They have suspended building and home buyers need to call 877-538-4889 for information about the status of their properties according to their website.
According to Alex Barron, a trade group analyst quoted in Reuter’s coverage of this story, the Tousa company is in danger of suffering the same fate. Tousa is currently building out the SW Orlando community of Independence in Winter Garden and similar concerns were posted on this blog in early October entitled “TOUSA Finally Gets Settlement Deal for Transeastern Homes”.
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