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."
The latest news from around North Texas.
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.