Consumption and Real Estate
My homebuilder who went bankrupt won’t honor warranty?
Question : My homebuilder who went bankrupt won’t honor warranty?
Hi – after we bought a new home last year, the homebuilder declared bankruptcy. When we found out, we called them and asked them how the home warranties would be affected and we were informed that they would “transfer” the warranties to a 2nd company. We now have a warranty issue but when we called the 2nd company it turns out the homebuilder only transferred homes that were sold after 4/18/08 – (we bought our home on 3/31/08). We were told that we were “out of luck” or we could hire an attorney. Anyone have any thoughts, ideas, advice?
Thanks!
home warranty advice
Best answer:
Answer by Heather Y
Hire an attorney. You’ll just be in line after everyone else trying to get money from the builder.
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#2 written by Theandysullivan 1 year ago
Unfortunately Bankruptcy dissolves all applicable warranties on said property. The builder is out of the picture now. They tried to do you a favor by transfering the warranty, thing is, why would anyone guarantee another, bankrupt builder?
Sorry. You do still have the option to buy a homeowners warranty. It guarantees the appliances and whatnot. Good luck.
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#4 written by Expert Realtor 1 year ago
You are out of luck because the business has filed for the bankruptcy…not the actual owner.
There is a cheaper alternative to paying an attorney.
You can purchase your own home warranty…call any real estate agent in the area and ask for a list of companies that they sell home warranties through. Old Republic is a very good one.
Since it’s new, they will probably not require an inspection…they cost about $ 350….but you’ll pay more than that for an attorney.
This is one of those case where you will win in court, but you won’t get anything out of it b/c judgments can be included in a bankruptcy as well….and the attorney will turn around and send YOU the bill.
Don’t win the battle but lose the war.
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My builder refused to provide a suitable solution to multiple leaks in my brand new basement. I hired an atortney and an engineer. $ 12,000 later they told me it would be cheaper for me to pay to fix the problem ($ 14,000 more) than to pay to litigate my builder. So… I fixed it. I wish I’d known from the beginning. I would have saved myself the first 12,000 and just hired someone to fix it.
Good luck,
Susan