Well, it’s official…Davis Home is now closed, out of business, shut down. As of today July 23, 2008 Davis homes is no more. If you read my blog you know that I have been writing about Davis Homes going out of business since last year. I also wrote a blog post about homeowner’s getting mechanic's liens placed on their homes because Davis didn’t pay their subcontractors that generated lots of comments and interest. Thankfully, Davis homes appears to have paid these liens and done the right thing.
In a press release located on their website, Davis Homes says “Unlike some companies that simply closed their doors, Davis has worked hard during the past few months to implement a plan to complete all the homes that were under construction and to pay homebuilding vendors and subcontractors.” On this point they are correct, they really could have taken a different path a left many homeowners high and dry with liens all over the city.
They do however engage in a little spin: “In addition, Davis invested in warranty insurance plans for all of its homes and homeowners to ensure that future warranty obligations will be met.” This makes them seem a little more philanthropic than they actually are. What they have done is what they are obligated to do by law and that is provide a 2-10 warranty on the homes. While this will offer some protection for the buyer, it will certainly not be the same as having your normal scheduled walk throughs with the builder.
The press release goes on to say “It’s (Davis Homes) also working diligently to secure comparable homebuilding companies to complete each one (neighborhood).” Westport Homes is already selling homes in several of Davis’ old communities and M/I Homes has taken over a few as well. I don’t think anyone needs to freak out and assume that their neighborhood is going to be left undeveloped and have empty lots sitting there forever. Westport, M/I, and perhaps other builders will pick up where Davis left off and in a few years no will know the difference.
All in all, this shouldn’t be that big of a deal to most Davis homeowners. There will inevitably be some that will have or already have issues that may not get resolved, however I do think the 2-10 warranty should provide enough of a safety net that no homeowner should have to suffer that much.
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Date: 2008-07-23 14:33:41Views: 823
Comments
insider
just wondering what everybody thinks about davis building the house for the home show? might still be a little early but i heard they were coming back in two years.really never left just running under the radar.
RonOrr.com
It is sad, I work with builders every day and it's a tough market out there, it seems the more homes you have the tougher it is. You really need to look out for clear title these days.