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Thoughts and Experiences from the Mile High City of Denver, Colorado

Builder going bankrupt, homeowners on their own


9NEWS - Builder going bankrupt, homeowners on their own More on Neumann Homes and their bankruptcy. They have completely abandoned their developments and are leaving homes unfinished. These are homes that have been sold to people who are now out their down payments.

Also, homeowners who closed within the last year are now out the one-year warranty that they have paid for. We utilized the one year warranty to fix little things that affected our house. Problems with toilets, the wood floors, some concrete work, and problems with the windows. We were able to get them fixed. But now, that won't be covered by Neumann for those other homeowners.

Finally many homeowners are in limbo because Neumann Homes has actually not filed for Chapter 11 yet. They have announced that they will, but they haven't yet. So there is confusion in the air.

From an article in yesterday's Chicago Tribune, where Neumann is based, they said, "Neumann Homes remained Monday in what several bankruptcy experts said was an unusual situation: on the verge of filing for Chapter 11, but not there yet." Many expers interviewed in the article, "Bankruptcy Lag Hangs Up Customers," were perplexed by this move.

I am hoping that this gets resolved quickly so that the homes will get finished and people into them. Otherwise it becomes an eye-sore and a security risk.

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I just find in quite interesting that they said they were filing for bankruptcy last week, but they have yet to do so. I think they either need to get to it or start talking more positively. Right now, they can't be trusted.