Levitt and Sons file for Chapter 11 protection

FAQs for customers of Levitt and Sons
Why did Levitt and Sons file for Chapter 11 protection?The housing market is going through perhaps the most difficult conditions in the last 25 years and Levitt and Sons, like other home builders, experienced an increasingly challenging business environment. Unfortunately, despite an around-the-clock effort, discussions with Levitt and Sons' bank lenders to obtain appropriate funding have been unsuccessful outside of bankruptcy. Filing for Chapter 11 protection provides a legal framework for Levitt and Sons to try to work out a resolution with its bank lenders, vendors and other creditors.
Does this mean Levitt and Sons is going out of business?The future of Levitt and Sons is uncertain at this time. As part of this process, we will explore the potential sale of all or some of Levitt and Sons' assets. For now, Levitt and Sons is focused on maximizing the value of its assets and minimizing the inconvenience for its customers.
How long is Levitt and Sons' Chapter 11 reorganization going to take?Large Chapter 11 cases generally range from several months to three years or more in duration. That said we do not yet know how long this process will take for Levitt and Sons. Levitt and Sons intends to take all appropriate steps to expedite its bankruptcy case.
Is there a chance the assets of Levitt and Sons will be sold?Yes. There is a chance that some or all of Levitt and Sons' assets will be sold
Is there a chance Levitt and Sons could get some or all of the funding it needs from the bank lenders during Chapter 11? If Levitt and Sons does get funding, would it return to business-as-usual?Levitt and Sons will continue to have discussions with its bank lenders regarding funding. However, at this point it seems unlikely that Levitt and Sons will be in a position to return to business-as-usual.
What will happen to unfinished homes and homes that haven't closed yet?We are hopeful that the Chapter 11 process will lead to the completion of some unfinished homes. Likewise, we are hopeful that previously delayed closings on completed homes can be promptly rescheduled and closed.
I have put down a deposit on a home that's not complete. Can I get a refund?That's not yet clear and will depend on the banks and the Chapter 11 process. We are hopeful that the Chapter 11 process will lead to the completion of unfinished homes.
Why has construction stopped on my home?At this juncture, Levitt and Sons does not have enough funding for any construction. We are hopeful that the Chapter 11 process will lead to the completion of some unfinished homes
My home is complete but now Levitt and Sons is telling me I cannot close because of the Chapter 11 filing. When will I be closing?We do not yet know if or when previously postponed closings on completed homes will occur. Levitt and Sons intends to work closely with the banks and the Bankruptcy Court so that these homes can be closed as quickly as possible.
Will the remaining lots be developed?That's not yet clear. It is possible that the communities will be taken over by the banks or sold to other developers who will determine how or if they wish to complete development.
Is Levitt and Sons aware that some of its customers have liens against their homes? Yes, and we sincerely regret any hardship this has caused.Because liens are maintained as public records, you may have received a notice that lien has been filed against your home. Levitt and Sons regularly searches lien records, and is likely already aware of this lien. You do not need to send us a copy of your lien notice, but if you would like, you can mail a copy to us at: Levitt and SonsAttn: Legal Department/Lien Notice2200 West Cypress Creek RoadFort Lauderdale, FL 33309
Is Levitt and Sons able to satisfy the lien that was placed on my home?No. Levitt and Sons cannot satisfy any liens that may be placed on your property.
Can I pay a lien against my home myself?You should consult an attorney before doing anything.
What about my community's unfinished clubhouse?The status of unfinished clubhouses varies by community. Unfortunately, we do not know more about the clubhouses or other improvements at this point in the process.
How will the Chapter 11 filing affect my community's Homeowners Association (HOA)?It varies by community. If the control of the HOA was previously turned over to the association, the Chapter 11 filing should not affect the HOA and the HOA will continue to operate according to its rules and regulations. The status of HOAs still run by Levitt and Sons is not yet clear.
Will there be any kind of special assessment by my HOA to cover costs not paid by Levitt and Sons?It will be up to the HOAs to take day-to-day control and determine whether there will be any assessments.
What happens to my home warranty now that Levitt and Sons has filed for Chapter 11 protection?Because of the Chapter 11 protection, Levitt and Sons cannot honor warranties. You will need to make your own arrangements for repair work.
Courtesy of Levitt and Sons