According to the Sunday Omaha World Herald article here;

Two Omaha-area housing subdivisions have filed for bankruptcy, the first in a wave of what could be a dozen or more reorganizing their finances. Housing developers have thousands of vacant lots on their hands at least twice as many as a healthy supply and some are defaulting on the bank loans that got their projects going. Banks are suing the developers personally to exact payment.  For residents of affected subdivisions, the future of their neighborhoods, tax burdens and property values are at stake.

As the market struggles to climb out of a recession, some subdivisions are stuck with millions of dollars in debt and scant tax base to pay the bills. Even with a recent pickup in home construction, industry officials say, bankruptcy is now inevitable for a string of subdivisions. They agree that too many inexperienced developers and too many inexperienced investors jumped into the market. Meantime, easy financing encouraged developers to start larger subdivisions with more lots than were necessary in the immediate future.

Banks, now, are expected to tighten lending requirements and developers will create fewer lots at once. Compared with the boom years, banks and developers now have access to more comprehensive data on lots and sales.  Prospective homebuyers looking to build in one of the subdivisions might find a bargain, but also will want to ask questions about the development’s finances and plans.

If you read this article be assured that none of the CBSHOME subdivisions are involved in the defaults and bankruptcies.

Joe Valenti, Executive Vice President of CBSHOME stated how fortunate we feel that none of our subdivisions were mentioned in the article.  John Allen, who has been developing subdivisions for over 30 years and as CBSHOME’S website for lots and developments, states, has developed approximately 17 residential areas with thousands of home sites in the metro area.  He has worked diligently with our financial partners, land engineers, SID experts and others to develop the best possible subdivisions.  We continue to work with our agents, builders and financial partners to build homes in all of our areas even in these very challenging times.  Shadow Lake, Cinnamon Creek, Falcon Ridge, Whitehawk and Southwind have been very successful and are moving along very nicely.   We are seeing new activity in the Northwest metro area with the opening of two grade school facilities in both Castle Creek and Pine Creek subdivisions.

April 2nd, 2010 Print This Post Print This Post

Posted In: Community News, Omaha City, Omaha Market Update, Uncategorized

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