From the Arizona Department of Real Estate;
The Department has been notified that Randall Martin Homes‘ subdivision lot holdings are going into foreclosure. According to Randall Bury, owner of Randall Martin Homes, the company is ” walking away” from its holdings in Marley Park, Roosevelt Park, Valley at Dobson Crossing (aka Portello at Dobson Crossing) and Higley Park. It is anticipated that the lien holder(s) will assume ownership. No complaints have been filed regarding Randall Martin Homes; however, we believe that it is important to alert Consumers and Industry of the company’s intentions. ADRE is proactively taking steps to ensure consumer protection. Should consumers have questions or concerns, please contact Cindy Ferrin, Manager – Development Services at email@example.com. [emphasis added]
The Arizona Republic looks at the “walking away” of the Scottsdale company from unfinished houses and empty lots, and it’s effect on homeowners in one Randall Martin subdivision, Portello at Dobson Creek in Chandler, Arizona.
The company is not filing for bankruptcy! Just “walking away.” Interesting.
Instead, the builder’s lien holders will take over ownership of the vacant lots and unsold homes, which could cause a three- to five-year delay in completing the development.
What a mess!
That’s gotta hurt your property values when you have unfinished homes in your neighborhood with no completion date in sight.
Since they’ve moved in, they haven’t heard from the builder, who was supposed to complete final repairs within 30 days. The only company they have heard from is a subcontractor threatening to put a lien on their house if the builder doesn’t pay a $500 bill.
The builder’s lawyer says Randall Martin will honor it’s warranties. I’m not seeing any customer service awards in Randall Martin’s future.
Randall Martin must have some assets otherwise they would have declared bankruptcy. The homeowners might have to play hardball with Randall Martin to get their warranty work done.
“I’m freaking out because I bought this brand new house and thought all these things were going to be fixed,” she said. “You expect all those things you agreed upon to happen and now with him going out of business, I don’t know how they’re ever going to happen.”
A separate article on Randall Martin had this to say;
Recognizing signs that a builder is in trouble and reporting them to the Real Estate Department can help head off problems, Utley said.
“One sign is a mechanic’s lien,” she said. “If a builder has not paid a tradesperson, after a certain period of time they will get a lien placed on the property and there will be a notice placed on the house. It’s a good sign the builder is in trouble.”
How would you like to find out that you have a mechanics lien against your brand new home because the builder skipped out on the sub-contractors. It’s absolutely no fault of your own, but the lien is against your home.
Trade people are not getting paid, and that’s kind of a red flag that the developer is having difficulty
Yep. That’s a red flag and a real problem for new home buyers.
New home buyers beware!