Jersey Shore Becomes Bubble Central - (Temporarily)
The Dow Jones Wire Service carried the Kara bankruptcy news early this morning. (This is the news feed that Wall Street reads.) Kara Homes looks like it is the first large home builder to fail in this cycle and so it seems to be recieving a lot of media attention. In addition, the major bubble blogs are covering the situtaion in full force drawing attention (unwanted attention to some, no doubt) to the Jersey Shore.
What is clearly of concern to followers of the home building industry is that the market seems to have soured so fast, and in an area that is probably not as "frothy" as places like southwest Florida, Vegas or San Diego. I don't doubt that the Kara's predicament is going to be examined pretty closely to see if there are any similarities between their business model and that over the larger public home builders.
In the meantime, see if Kara owes you any money.
Link to Kara Chapter 11 Filing
What is clearly of concern to followers of the home building industry is that the market seems to have soured so fast, and in an area that is probably not as "frothy" as places like southwest Florida, Vegas or San Diego. I don't doubt that the Kara's predicament is going to be examined pretty closely to see if there are any similarities between their business model and that over the larger public home builders.
In the meantime, see if Kara owes you any money.
Link to Kara Chapter 11 Filing
posted by Little_Silvered at 5:16 PM
12 Comments:
This is a welcome, "get real" situation to all those unrealtistic sellers asking insane prices and the greedy realtors and brokers leading them down the path of deception. Wake up! The housing market is crashing. If you want to sell a house, price it fair. Hopefully there are no buyers out there that become victims and get caught in this mess.
"This is the beginning of a a very difficult market for builders and resellers alike"
- a quote from Patrick J. O'Keefe, CEO of the NJ Builders Association in todays APP in the article about Kara Homes.
Gee, isn't it amazing that the APP is finally acknowledging that the shore market is tanking - so soon after publishing those pro-real estate articles about three weeks ago stating how prices have stabilized in Monmouth/Ocean and will remain steady in the coming months. Talk about irresponsible journalism-that paper has no credibility in my opinion. Shame on them!
I feel sorry for any buyers who stand to lose their down payment because of Kara Homes.I hope they get legal representation and fight to get their money back- I'd rather cancel the contract and get my money back than go forward with the purchase of a Kara home at this point. However, those people and anyone else who bought over the past year were very foolish to begin with,considering the shaky ground that this market has been on. Live and learn.
We bought a condo, were supposed to close in Dec, our money is safe,in a protected non interest bearing account with lawyer,
we got condo $100,000 cheaper than equal condos, I hope it still goes through it is 100% finished.
I do feel sorry for people who bought at top of the market.
I have a deposit with Kara and I am out for blood. If anyone has any suggestions other than get a lawyer I would love to hear it. If I lose my deposit then I will make sure that every single employee (including Zudi & Uncle Hector) not only lose every possession they have but spend the rest of their life rotting in jail. My life is now a living hell while these crooks are taking their sweet old time to sort out this mess. By the way this happened becaused they cannot manage cash? It is not that hard... Cash in... Cash out...
Hey, guys like this usually take cash and put it in the coffee can for a rainy day.
My Lawyer advised me that we will get a letter in about 3 to 4 weeks explaining our options, if you have a contract with them,
Good luck!!
He also said it could take up to two years to straighten it all out
The court cannot possibly look upon kara in anything other than a dubious light after seeing that systematic way they avoided paying people, can they? Appears to have been standard practice there.
Kara owes $297 million; dozens of area contractors on creditor list
Posted by the Asbury Park Press on 10/6/06
STAFF REPORT
Kara Homes Inc., one of the largest home builders in Monmouth and Ocean counties, has $350.2 million in assets and $296.8 million in liabilities, according to its bankruptcy petition, which was filed late Thursday.
The East Brunswick-based home builder said it has between 1,000 and 5,000 creditors, including dozens of area contractors.
Among them: RWZ Inc. Stairs & Rails in Lakewood is owed $890,654; Benchmark Inc. in Lakewood is owed $876,585; Michael J. Wright Construction Co. Inc. in Dover Township is owed $780,309, and Manzo-Maroba Construction in Marlboro is owed $686,100.
Kara Homes is seeking to reorganize under Chapter 11 of the bankruptcy code.
Editor's note: If you are affected by the Kara Homes bankruptcy and would like to talk to a reporter, please call Michael Diamond at (732) 643-4038.
Gee I wonder if the NJ property tax will also be compensated to this future price correction?!
I still have to laugh at all the property owners these past years sitting back with their obnoxious smerks and patting themselves on the back, thinking their real estate geniuses because "they simply showed up"
Did you know property tax is just another form of rent!
Hey guys are you enjoying your new property tax assessment? You know, since in worth so much more now! (or so you think)
Now enjoy it! You asked for it!
Now would it just make more sense all around if the price of home was directly proportal to income, with NORMAL APPRECIATION, and not moronic emotional immediate gratification believing the bumper sticker slogen: - prices never go down. What a buch of zombies!
I just heard Tom Stevens, president of NAR and Zudi K. of Kara Homes on a repeat broadcast of "The Home Show" on WOR. It was from earlier this year. Tom Stevens said that people should continue buying homes because prices never go down.Zudi agreed and he talked about the great reputation of Kara Homes and how well the company was doing. Absolutely disgusting!
doomednj.blogspot.com
Post a Comment
<< Home