Is This Home Builder Going Bankrupt?

Recently I drove into a new community that had no models open, no amenities built, and no open house hours. There was a lawn sign half leaning over that said "model homes" with an arrow pointing but I could find no model.

This is a reminder that there are home builders that are still seeing bankruptcy. I then came across a homeowner who said the builder may be going into Chapter 11 and that the homeowners were "keeping an eye on it." Some of the signs to watch for:

• no agent on the property,
• no security guard, no models, no amenities,
• maintenance not kept up
• more obvious things like construction stopped, employees laid off, no workers showing up
• home warranties not honored.

This community seemed had those signs. I don't think the builder is bad or scamming. They may be caught in today's poor economy. A builder can do their best to keep promises but if their homes aren't selling and they can't get loans, they can go broke. Be very observant.

Reminder: if there are amenities promised that you really want and they aren't built yet, you may wish to wait until they are. Some people have opted to wait until amenities are completely finished. Look for positive signs also. Today's builders advertise heavily when the amenities are built.

They aren't bragging; they just know it will be a good sign to buyers that the project is moving along as promised. (This is not a 100% guarantee either.) So "snoop" around. Sometimes the current homeowners are the best ones to ask. While a bankruptcy can have disastrous consequences, keep in mind that some communities have gone through this and survived.

The National Association of Home Builders market index hit 40 in September, a high this year and the most since 2006, but still has not gone to 50 which signals a good rating. This ranking shows the confidence of home builders in the market. We do not make recommendations of communities. Always do your own research.

Suze Orman's Financial Tips for planning for Retirement

Suze Orman has some excellent financial tips for retirement.

Americans seem to be tightening up the ship and preparing for the worse--a worse we hope doesn't come.  But it's good to be prepared--your retirement future may depend on it.

Our biggest expenses stem from a mortgage, energy bills, car costs and food.   Seniors are tightening up.   Downsizing in a word.

Small homes, energy efficient homes, living beneath our means to save more--that's what you're hearing.  

I'm not a follower of Suze Orman, but she did give a great talk on public tv the other night.  Her main points hit at future retirement for seniors: living beneath our means and saving.  She said to know where you are today and where you want to be. Own your home, own your car and no credit card debt.

How does that figure with our retirement communities.  They offer more small home options, more energy saving features, more commute communities.   The larger the home, the more important the energy savings features are.  Our communities are responding to our needs.  And going forward, the newer communities have the advantage now.

America is changing and active adult developers are listening. 

Retirement communities have always offered good value and I believe now and in the future they will offer even more value in helping you save for retirement and your senior years by helping you save money with lower energy bills, closer commutes, and smaller but more efficient homes.

Looking for a cost-effective way to retire? Try a mobile home! Check out some fabulous mobile home parks for retirement.