Homebuilder’s Bankruptcy Leaves Empty Lots in Riverside County

June 25, 2009 · Posted by Alex

From the North County Times online:

“The bankruptcy of a major regional homebuilder has left two large tracts in Southwest Riverside County with hundreds of empty lots, prompted a lender to foreclose on one and a homeowners association to demand $2 million in compensation.

John Laing Homes, of Irvine, built a links-style golf course near Lake Elsinore’s baseball stadium and said as recently as March 2008 that it planned 1,500 homes at the neighboring Summerly development. Laing also built several dozen houses at the Holiday senior community in Menifee, with plans to extend the development to nearly 200 homes.

But construction has remained stalled amid weak real estate markets.

The builder filed a Chapter 11 bankruptcy petition in February, seeking temporary relief from debt estimated between $500 million and $1 billion. The Delaware judge handling the case ordered the company liquidated in early June after concluding that the company lacked the assets to cover that debt and re-emerge successfully, according to court records. Messages left with the trustee were not returned.

A lender appears to be foreclosing on parts of the Summerly development. Lawns at a half-dozen model homes are overgrown with weeds, and notices recently posted on the houses indicate a foreclosure auction is scheduled in mid-July, a neighbor said.

Residents of the Holiday development and the 4S Ranch development in San Diego’s Ranch Bernardo neighborhood have filed claims against the builder’s bankruptcy estate.”

For more bankruptcy news, visit Curtis Law Group

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Bankruptcy Bill Stalled in Senate, Negotiations Underway

March 31, 2009 · Posted by Alex

It seems that the Bankruptcy Bill that passed in the House, is now stalled in the Senate…

From Curtis Law Group’s news section:

“Congressional Democrats in the Senate are trying to pass a bankruptcy bill, coined as a “cramdown” bill by opponents of the legislation, which aims to help stem the tide of foreclosures by giving bankruptcy judges the discretion to modify mortgages for homeowners who otherwise cannot afford their homes.

The House of Representatives have already passed a version of this bill, but Republicans are holding it up in the Senate. The Senate has decided to put off the vote until later in April, while changes to the bill are negotiated.”

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