As you may have all heard, Neumann Homes is planning to file for Bankruptcy. They have not done so yet, but likely will in the near term. The BOD is in contact with Jim Niemczyk to get as much information as we can, and will provide it on the MSI website and the community Blog as it becomes known.
At this time, since they haven't even filed for Bankruptcy, there is little we can do, other than wait until they do file, and then find out what the Bankruptcy court is going to allow them to do as far as following through with home warranties and completing homes under construction.
All the remaining homes at VHP went under contract during the auction in October. They were all sold with a condition of having an Certificate of Occupancy. We have been told by Jim Niemczyk of Neumann Homes that Neumann has every intention of completing these homes so they can close on them, but at this moment a completion date has not been set. The Board does feel that it's highly likely that Neumann will complete these homes so that a profit can be realized and distributed to creditors. However, there is risk that this process may be drawn out, pending court proceedings. The homes at the auction were sold "as-is" so homeowners will not get a 1 year home warranty. The BOD will continue to work with Neumann Homes to try to get a closing date for these homes.
Anyone who has concerns about their warranty should contact Neumann homes at:
Matt Horner, in the Chicago Office
Phone 630-281-2184
Matt.Horner@NeumannHomes.com
All warranty personnel in Colorado have been let go so all coordination will take place via Matt.
We have been working with Neumann Homes on the homes with concrete problems, especially in drive-ways. That work was delayed several times by Neumann and at this point we do not believe that Neumann will fix these issues. It will likely fall back to the homeowners. We will continue to follow through with Neumann to see what will happen here, but unless the bankruptcy court allows the expenditure, we doubt that anything will be done.
One the plus side, most of the homes in VHP have either completed their warranty period, or at least had the 30 day warranty coverage. Also all of the common areas (Pool, Clubhouse, Landscaping, etc.) have all been completed for over 1 year now so the warranty work was finished in those areas. The HOA will not be stuck with trying to finish out these areas.
At this time we are not planning an emergency HOA meeting. Until Neumann actually files for Bankruptcy and has their first court appearance with their initial plan on what to do, there is very little that we can do. Once the bankruptcy court goes through their plan we should then at least have some preliminary guidelines of what will and won't be allowed to be completed by the court and then we would be able to have a discussion on our options.
Our next homeowners meeting is scheduled for January. This may actually take place before we have any firm direction from the bankruptcy court, so having a meeting prior to that will not be very productive.
Sincerely,
VHP Board of Directors.
7 comments:
I just received a notice of intent to file a statement of lien from YC Concrete Options, Inc. for some warranty work they started on my front yard. I need to contact Kurt Weber to get a statement that he through them off the job after they destroyed the sod. If anyone knows how to get in touch with him, please let me know.
Dan, I don't know how to get ahold or Kurt, but I do know he lives in the Harmony Park area.
I, too, have had a lien sent to me from Custom Fence. Do you, or anybody else, know what actions should be taken when receiving a lien?
I don't believe we should be held accountable, but am unable to find any advise/direction as of yet.
If you don't mind, please share any lien experience in case there's something helpful for the rest of us.
Thanks.
We also received a notice to file a lien from YC Concrete. Contact your closing company, if you closed through Land Title you should have purchased title insurance which will take care of the liens.
Yes, you should give copies of any liens to your title company. We have received so far in excess of $40,000 for unpaid services (concrete, fence, cabinets, drywall, to name a few). It makes me very nervous, but our title company (Land) assured us they will take care of it. Good thing for title insurance!!
When will we know what will happen to the auction homes - especially the unfinished ones?
Anyone reading this blog purchased one of the auction homes? I want to know if you've heard what will happen to them.
As for the people who I saw on 9 news talking bad about Neumann Homes. I think it just makes the value of the neighborhood drop. I have seen builders with worse quality and actually think Neumann is not that bad. Otherwise I wouldn't and you wouldn't of purchase one. There is a lemon or two in every product. It's really who happened to be building your particular home that day. I don't think you can blame Neumann Homes for everything. They have built over 11,000 homes. Neumann will not be the only builder that's going to file for bankruptcy. More will follow.
Engle Homes (TOUSA) went bankrupt last week.
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