New Construction Update – Newmark Homes Files Bankruptcy

TOUSA announced on January 29th 2008 that they were filling Chapter 11 Bankruptcy. In a statement they released on 1/29 they indicated that the filing includes Newmark Homes which is an active home builder in the Houston and Clear Lake area. In the League City area, Newmark builds in Westover Park, Tuscan Lakes and Friendswood Oaks. The statement from their parent company states that ONLY their title company, mortgage company and insurance company are excluded from the filing. Unfortunately, how this will impact current and future home buyers is not clear. Newmark provides a consumer question and answer page to try to answer some questions that the public may have.  If you click on the link you will notice a lot of answers that include “we are going to ask the court”.  Not exactly a reassuring statement. They also go on to say how they are in stronger financial standing today then before they filed. Most people would find that statement odd. Judge for yourself.

Here is the bigger problem. Some salespeople at Newmark developments in League City are telling home buyers and real estate agents that “our subdivision was excluded” or “it has no affect on buyers”. I was shocked when I heard this but later I  heard it from a few other agents.  This is one of the many reasons why you need to use a Realtor when purchasing a new home. We are required to be honest and truthful with consumers.  TOUSA (Newmark) may come out of the Bankruptcy stronger in the future, but it’s current financial status can have a major impact on buyers today.  Buyers need to be at least be made aware of what is going on.

I am not an attorney and I don’t play one on TV, the above statements are only my opinion of the situation. If you need legal advice consult an attorney.