Monday, October 09, 2006

More About Kara

I bet the solvent home builders are almost as mad at Kara as the employees and customers. No matter how much cash and access to credit a big homebuilder might have, the prospective customer is still going wonder if their deposit money is safe. New home customers should ask the big builders to post a performance bond just like businesses and government entities do when they have a big project built by a construction contractor.


Oct. 9 (Bloomberg) -- Kara Homes Inc., the New Jersey builder known for so-called McMansions, filed for bankruptcy after $250,000 discounts failed to lure buyers.

The closely held East Brunswick, New Jersey-based company sought Chapter 11 protection in U.S. Bankruptcy Court Oct. 5, saying it owes $296.84 million to lumber, concrete, electrical, plumbing and woodwork companies while holding $350.18 million in assets, primarily unsold houses and land. One property for sale is the 6,319-square-foot, five-bedroom ``Buckingham'' model with a three-car garage, listed for $1.5 million in Freehold, New Jersey.

Full article...

11 Comments:

Anonymous Anonymous said...

NOBODY HAS SAID WHAT THIS MEANS FOR THE HOMEOWNERS!!!!

Tuesday, October 10, 2006 4:05:00 PM  
Anonymous Anonymous said...

I enjoyed reading your blog very much. Thanks for taking the time to keep it going.
Shane
Great Health

Tuesday, October 10, 2006 6:14:00 PM  
Blogger I Love Broadband over PowerLine said...

What will happen to the 10-year Homebuilder`s Warranty after Kara Home`s bankruptcy filing ????

Wednesday, October 11, 2006 8:22:00 AM  
Anonymous rbyzell said...

you know, i hate to be negative but... i love it, i love it... i love it!!! no more mcmansions! yeah! i just hope that this helps to preserve the shore community from the yuppies, greedy lawyers, polititians and developers.

Wednesday, October 11, 2006 8:16:00 PM  
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Wednesday, October 11, 2006 10:08:00 PM  
Anonymous mr. rant said...

Dear rbyzell;
I used to hate McMansions, I thought they were a blight on NJ and it's wonderful farmland. Now I just realize that if most buyers didn’t desire them, they would never get built, so I put aside my particular brand of elitism and accepted that the masses by using their dollars were voting in droves.

"i hate to be negative but... i love it, i love it... i love it!!!"

Yeah ain't it great. All those people who don't have to go to work anymore pounding nails, pouring concrete, painting, landscaping, secretaries, plumbers, masons, workers in lumber yards, workers in plants making fixtures, delivering and installing appliances. They clearly don't need the money or the jobs, all those maggots made too much money the last few years and they deserve it! You are so right, screw em!!!!! I hope they become destitute and have to live out of their cars! Sell blood or maybe work the Lincoln Tunnel on Saturday nights, I am so glad you cleared that up for me.

On Tuesday or maybe Monday there was a wonderful article in the WSJ about the futures that trade in Chicago on home prices. I don’t know how the futures are constructed, but the article made some impressive points. Futures markets are very accurate in predicting the, um well, future. They are pointing to, a 7.5% drop for the Miami market. There are approximately 1500 contracts open in these products so while it is not a huge amount, they are trading. Now I don’t know how they are constructed and just don’t have the time to look it up right now, but someone who might want to actually value here ought to look into it.

Thursday, October 12, 2006 1:13:00 PM  
Anonymous rbyzell said...

dear mr. rant. what about all of the small local business owners who were put out of business to make way for mcmansions? what about all of the people who will get screwed when their interest only mortgage's skyrocket? most people i talk to hated the phonieness of the real estate boom and its consequenses. yes, it was phony. greenspan manipulated the market with those low rates. more people will get hurt from this than those who made a little money in a short time.

Thursday, October 12, 2006 2:47:00 PM  
Anonymous Anonymous said...

Mr Rant: "I don’t know how the futures are constructed, but the article made some impressive points.

translation: with my head up my arse, things suddenly make sense.

Thursday, October 12, 2006 4:08:00 PM  
Anonymous Anonymous said...

Hi all, I recently began my own anti-Kara blog which you may find at http://doomednj/blogspot.com. I'd love comments from anyone & everyone with any involvement with Kara Homes.

Friday, October 13, 2006 5:46:00 PM  
Anonymous Anonymous said...

sorry it's doomednj.blogspot.com

Friday, October 13, 2006 5:49:00 PM  
Anonymous Anonymous said...

"What will happen to the 10-year Homebuilder`s Warranty after Kara Home`s bankruptcy filing ????"

Kara put its warranty department in the hands of two people with absolutely zero construction experience, AT ALL. Zudi took the advice of his HR director & his mistress (former McGreevey campaign staffer) and decimated the entire warranty dept. months ago. Now what's left of it is a complete cluster f**k. In my opinion, based on personal observation, those warranty guarantees are basically worthless.

Friday, October 13, 2006 6:58:00 PM  

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