Lake Mary - Central Florida Real Estate

Whew!  That is scary news for potential sellers and their agents.  I wish you well, Debbie.

Engle Homes is conducting a major marketing campaign around Southwest Florida with their "The End Is Near buy today for only $139,000 in select communities"  Now is the time for foreign national marketing... their money is strong and we have the "florida lifestyle of sand, sea, tennis, and golf" for them to make solid investments.

It is so tough for builders when prices start to come down-their costs to build are what they are.  Very sad.

That's really scary.  How would this affect the homes being and to-be built (quality, delivery,...etc)?  I've just signed a contract with their Live Oak Reserve subdivision in Oviedo.  A bit worried.

I saw their 2008 designs.  Basically, they dropped some standard items from the standard package and traded nice design features, such as high ceiling and robust foundation system, for competitive prices.  Well, I'm not sure if this is the right thing to do.  When BMW's building cars that target Hyundai's prices, will you buy?

Joan - You are exactly right, it isn't good news for anyone.

Scott- "The End is Near"...  I'm not sure that I would use that in a marketing campaign...  I'm hoping that is a townhouse for $139,000.

Jennifer & Starfish -  I've also seen their new 2008 plans...  There is some real "value engineering", as we used to call it when I worked for a builder, going on.  Moving plumbing to common walls, using interior load bearing walls in lieu of trusses that span the interior of the home.  They are trying, I'm hoping it is not to little to late.

NYC- If you are working with a REALTOR who represented you in the purchase of your home at Live Oak Reserve or if you were unrepresented, I would be on the phone talking to the sales staff and your on-site builder for guidance.  I have always had positive experiences with Engle Homes and hope that they will work to complete homes that are currently underway. 

Hi Debbie, I it not a new situation...many large builders have let options on land expire and are in a survival mode.  The builders have little concern for existing homeowners that are selling.  Great post to keep buyers and sellers informed of market trends and changes Debbie.

NYC  - Engle is still building pretty strong in Live Oak Reserve.  They are attempting to close out the final phase (roughly 20% +/- vacant sites out of 934).  Although sales have definitely slowed, it appears that Oviedo Forest has slowed dramatically (another community in Oviedo) and Engle has trimmed some of their models down similar to what Debbie said...less standard upgrades, smaller lots, smaller footprints, etc.

Florida really is a tough market, I can't imagine how you all keep positive.  It is always hard to compete with builders and it sounds like now it is worse than ever.  Keep taking it one day at a time and you will come out stronger at the other end!

One of our friends recently moved from Pennsylvania to Orlando is currently home hunting in Oviedo area.  I have to say Engle owns the best lots there. He likes the 2008 new designs.  At the same time, he has a little concern about the quality of the "value engineered" houses.  He kept asking us "aside from the ceiling height, interior walls, foundation (changing from stem wall to mono-slab), what else have they engineered?  Will building quality & reliability be compromised by value engineering?" Guess I can simply quote Jennifer's comments "their cost to build are what they are".  Am I right?

Gary - I'm sure that you are seeing similar occurrences in your market. 

Robert- I agree that Engle has built an outstanding community in Live Oak Reserve.

Starfish - If your friend is contemplating purchasing an Engle Home, I would have really encourage them talk to the on-site builder.  The questions that they are asking are all legitimate and Engle's professional building staff should be able to educate them as to their building process and alleviate any concerns.  If they still have questions, I would talk to a few area production builders to get a better understand of what they can expect in a new home.

I am right now negotiating price with Engle Homes for a single family home (Cherry II floor plan) in Live Oak community in New Tampa. After reading this I am now scared and confused. At one side I am thinking this should help me to negotiate better price with them and also get great fixed mortgage rate (4.90% for real?) and on the other side I am scared what if they don't end up building my house. What effect it will have on me?

If I put a very little deposit amount - say 2k or 3k, do you guys think it is worth taking risk? I really LOVE Cherry II floor plan and the lot where they are building it is also beautiful.

I will SO MUCH appreciate any advise. I was about to pull trigger this weekend. Please help!!!!!!!!

Sam

Engle Homes is an excellent builder.  The interest rate that I mentioned was in a specific community in Apopka, Florida.  I do not know if they are offering this incentive in every area, builder's usually offer incentives on inventory (spec.) homes.  Talk to your REALTOR or if you are an unrepresented buyer you need to talk to Engle directly about any incentives they are offering.  I always recommend using a REALTOR when purchasing a home, you need a professional representing your best interests.  I hope that you have a successful purchase with Engle Homes and enjoy your home for years to come. 

Builder TOUSA Inc. files for bankruptcy
By John Spence, MarketWatch
 EST Jan. 29, 2008
BOSTON (MarketWatch) -- TOUSA Inc., the Florida-based homebuilder that's been
roiled by the housing downturn, Tuesday said it and certain subsidiaries are filing
for bankruptcy.

TOUS) , which is listed in the pink sheets, filed voluntary petitions to reorganize
under Chapter 11.

"The company's proposed restructuring is the result of the dramatic downturn
in the U.S. housing market, which accelerated over the last several months due to
a number of factors, including severe liquidity challenges in the credit and mortgage
markets, diminished consumer confidence, increased home inventories and foreclosures,
and downward pressure on home prices," TOUSA said in a statement Tuesday.
Chart of TOUS
"This action is necessary to reflect the realities of today's homebuilding
market," added Chief Executive Antonio Mon.
"We are focused on restructuring our balance sheet and we expect business to
continue as usual," the CEO said. "Most importantly, there should not 
be any interruption in the construction of homes and our customers should not be
affected."
The company has about 2,500 homes in backlog.
TOUSA, previously known as Technical Olympic USA, said Citigroup Inc. has agreed
to provide it with up to $150 million in debtor-in-possession financing.
The company earlier this month said its chief financial officer had resigned.
Several home builders have been forced into bankruptcy as a result of the housing
bust and the credit crunch. Last year, Levitt and Sons, a unit of Levitt Corp. (LEV

LEV) , and 37 of its subsidiaries filed for Chapter 11 bankruptcy protection, citing
the "sudden and steep" housing pullback in Florida and the Southeast.
TOUSA in November said its third-quarter loss widened and that it could be forced
to file for bankruptcy as a result of the housing slump. End of Story
John Spence is a reporter for MarketWatch in Boston.

The following is a Press Release from Tousa Homes....

 

 

Jennifer Mercer Telephone: (954) 364-4013 Email: jmercer@tousa.com

Company Contacts:    Information Hotline (866) 588-9290

  

  

  

 

 

TOUSA Receives Interim Court Approval of $135 Million Financing Agreement With Citigroup Global Markets

  

All Operations Continue Without Interruption

  

Company Also Receives Authority to:

  

• Continue Customer Programs, Including Warranties

  

• Pay Employee Wages and Benefits

  

• Pay Prepetition Claims of Subcontractors With Valid Lien Claims

 

 

HOLLYWOOD, Fla., January 31, 2008-- TOUSA, Inc. (OTC Pink Sheets: TOUS.PK) - TOUSA, Inc. today announced that it has received interim Court approval to borrow as much as $135 million from Citigroup Global Markets Inc. to pay normal operating expenses, including employee wages, construction costs, and payments to suppliers. The financing is senior to existing debt and requires final Bankruptcy Court approval.

 

Judge John K. Olson of the U.S. Bankruptcy Court, Southern District of Florida (Fort Lauderdale Division) also granted the Company authority to continue customer programs, including customer warranties; pay employee wages and benefits; establish procedures to pay valid lien claims in the ordinary course of business; and to sell homes free and clear of all liens, with such liens to attach to the proceeds of the sales.

 

"The relief granted by the Court today will allow the Company to focus on executing its reorganization strategy and, at the same time, provide TOUSA with the liquidity and ability to continue normal operations, including building and selling homes, paying our valued suppliers, and following through on all of our commitments to our customers and business partners," Antonio B. Mon, TOUSA's Chief Executive Officer, said.

 

TOUSA, Inc. and certain subsidiaries filed for relief under Chapter 11 of the U.S. Bankruptcy Code in Fort Lauderdale on January 29, 2008. The case is number 08-10928. For more information, please visit http://www.tousa.com/ or the Court's web site at www.flsb.uscourts.gov.

 

About TOUSA, Inc.

TOUSA, Inc. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. TOUSA designs, builds, and markets high-quality detached single-family residences, town homes, and condominiums to a diverse group of homebuyers, such as "first-time" homebuyers, "move-up" homebuyers, homebuyers who are relocating to a new city or state, buyers of second or vacation homes, active-adult homebuyers, and homebuyers with grown children who want a smaller home ("empty-nesters"). It also provides financial services to its homebuyers and to others through its subsidiaries, Preferred Home Mortgage Company and Universal Land Title, Inc. For more information on TOUSA, please visit our website at www.tousa.com.

This press release may contain forward-looking statements within the meaning of within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or current expectations of the Company and its management. Any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results such as, but not limited to: (i) the Company's ability to continue as a going concern; (ii) the ability of the Company to operate pursuant to the terms of any debtor-in-possession facility; (iii) the Company's ability to obtain court approval with respect to motions in the Chapter 11 proceeding; (iv) the ability of the Company to develop, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 proceeding; (v) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; (vi) the ability of the Company to obtain and maintain normal terms with vendors and service providers; (vii) the Company's ability to maintain contracts that are critical to its operations; (viii) the potential adverse impact of the Chapter 11 cases on the Company's liquidity or results of operations; (ix) the ability of the Company to fund and execute its business plan;(x) the ability of the Company to attract, motivate and/or retain key executives and employees; (xi) the ability of the Company to attract and retain customers and (xii) other risks and factors regarding the Company and the home building industry identified from time-to-time in the Company's reports filed with the SEC, including the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2006, and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2007, June 30, 2007, and September 30, 2007, which can also be found on the Company's website at www.tousa.com. All information set forth in this news release is as of today's date, and the Company undertakes no duty to update this information.