Dozens of Home Builders Suspend Operations

By Greg Janda
|  Wednesday, Jul 29, 2009  |  Updated 8:41 AM CDT
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Dozens of Home Builders Suspend Operations

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A new home is built in Texas.

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As the credit crisis continues, home builders around the Metroplex suspend construction projects and try to reconcile debts.

Last week, Arlington-based Wall Homes filed for bankruptcy, a move that chief executive Steve Wall tells the Dallas Morning News is designed to"work out resolutions with our banks and construction vendors that lead us to a successful reorganization and prepare us for a busy spring selling season."

Others quoted in the same DMN story aren't so optimistic -- Ted Wilson of Residential Strategies Inc. believes the DFW area has already lost 25 production builders.

The root of the problem is credit; many banks are calling in loans on even the most successful builders. When businesses can't pay, they go under; when they can, it cuts operating budgets.

With less capital to pay off already hired subcontractors, the mess can get transferred to the home buyer if the unpaid workers put a lien on the house.

Workers are being effected, too, as failing builders shed positions and subcontractors find less opportunities.

Read more about this story in this DMN article.

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