Hi! What happend was borrowers (mostly no money down investors) got loans from banks to fund construction of their homes and the banks over extended themselves and were ordered to shut down loans on homes that were over a six month lending period (construction was taking 18-24 months at that time). Hansen Homes couldn't continue to build homes without money and most borrowers couldn't get another loan to complete the projects. The builders didn't walk away from anything, they just couldn't continue due to the banks shutting down the construction loans. This happened to many builders at the time. The banks didn't pay them for the work they did and the borrowers were left paying on partial loans. Everyone got screwed cause the banks got greedy and gave loans to people who never should have qualified.