WCI Files for Chapter 11 Bankruptcy Portection
August 4, 2008 by admin
WCI Communities, with developments in Florida, the Mid-Atlantic, and the Northeast has filed for Chapter 11 bankrupcy protection. WCI is the largest home builder to date to file bankruptcy in this housing down-cycle.
The rumblings on this have been around for a while and with the depressed housing market, there’s only so much a company like WCI can do.
WCI is majority owned by Carl Icahn’s investor group. Too early to tell how this will all shake out. The bankruptcy hearing is not shceduled until October. WCI owns lots of undeveloped land which they may be forced to sell at a steep discount to free up some cash.
Wow! I wonder what the repercussions of this will be. The market will correct its self eventually. Developers need to focus on building more affordable housing. Buyers need to know their budget and what they can afford. Never be house poor. I have seen many people who want the grande home with the huge mortgage, but can hardly afford to furnish it. Evaluate what it is you need first, then what you want in a home, see what is practical and feesable.