Need advice on considering a home in Estada by Monterra in Cooper City FL

Asked by Kevin, California Fri May 30, 2008

The trick is the builder is in Chapter 11 or 13 bankruptcy or I think they are calling it a reorganization. The developers/builders website shows a great future community but how afraid should we be of the bankruptcy filings and what may happen. They have about 19 inventory homes and a lot left to build

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5
Angela Schra…, Agent, Pembroke Pines, FL
Fri May 30, 2008
Hi Kevin: Tousa Homes, which operates in South Florida as Engle Homes is the builder of Estada at Monterra. Tousa filed for Chapter 11 bankruptcy early this year, becoming the largest U.S. home builder to seek bankruptcy protection in the face of the dramatic downturn in the U.S. real estate market.

I guess there is no way to make a guaranteed prediction as to the future of Tousa or any of the other builders that find themselves in similar circumstances, but, as you know, Chapter 11 is the "reorganization form" of bankruptcy, in which the bankrupt party seeks to work with its creditors and lenders to find a viable manner for the company to continue its operations. The news out of Tousa sounds promising, they have lined up considerable financing that has allowed them to make payroll, pay providers, and continue the ongoing building activity on site. Obviously, the final outcome will depend on the plan that Tousa is able to generate, and their ability to convince their lenders as to the financial sensibility of the plan. Typically, in these sorts of situations, the creditors are offered the lions share of ownership interest in the reborn company. Because Tousa/Engle has a well established reputation in South Florida, and also because the company operates under other reputable names in other communities, there is a certain amount of goodwill value in the company name.

You would be well advised to confer with a real estate attorney with regard to specific rights in the event that Tousa's Chapter 11 re-org goes bad. It is unlikely that the Monterra development would be abandoned, even in the present climate, but you would need the confidence to know how your rights and interests would be protected in any likely eventuality. I would not suggest that you be terrified of signing the contract with the builder but you should definitely gather as much information as you can. I hope this helps If I can help you find a local real estate attorney, please let me know.

With best wishes,

Angela
Villa G Realty

By the way, Cooper City is within walking distance of our offices in Pembroke Pines, and I live in an Engle built home!
Web Reference:  http://www.villagrealty.com
1 vote
Brooke 'The…, Agent, Camp Hill, PA
Fri May 30, 2008
Hi Kevin - talk to the builder and ask them directly if they are in CH 13 and reorganizing their financials as this is a positive way for them to 'trade out' anf NOT go 'deep' into banckruptcy...
If the area supports the 'value' then the development will 'hold' no matter what happens to the builder...
It may take a little more time for the builder to sell everything but that is the 'market' in most areas today - except for some good 'pocket' areas - yours may very well be a good pocket are!
Good Luck - Hope that helps!
Web Reference:  http://www.pahotlistings.com
1 vote
Lisa Quinter, Agent, Fort Lauderdale, FL
Tue Feb 16, 2010
Dear Kevin:

Monterra is now under the control of a new builder!! If you are still interested, please contact me as the prices are in the low $200's to the mid $400's! Yeah!!!!

I have 10 years experience representing developers and have extensive knowledge on negotiating with them! Yes - you can negotiate! Regardless as to what they say the first time!

Please contact me at lmbrealtycorp@aol.com, or call me at (954) 868-1416 if you are still interested in this community!!

Thank you,
Lisa M. Brodeur
LMB Realty Corp d/b/a Alliance Realty
(954) 868-1416
lmbrealtycorp@aol.com
0 votes
Stefanie Coh…, Agent, Weston, FL
Thu Jun 5, 2008
Kevin,
I know the area extremely well. I live in Cooper City and had originally bought in Embassy Lakes which was also an Engle develpoment. In this market I would be extremely cautious about buying into a development which is not complete. It could take a long time for the market to recover, and a new development will take even longer. If you really think this is where you want to buy, I would recommend consulting a real estate attorney. If you would like information on other properties in the Cooper City area, I would be glad to send you properties to look at. Please feel free to call or email me for more information.

Good luck!
Stefanie Cohen
Prudential Florida WCI Realty
954-547-9203
Scohen77@aol.com
0 votes
Bill Eckler, Agent, Venice, FL
Sat May 31, 2008
Kevin,

Our best advice is to avoit this type of involvement....there is too much risk involved and in the type of market we are in currently, there are numerous better opportunities. Even with a completed construction you are taking a risk with community services and fee structure associated with them.

If you are seeking great value in a wonderful location and a secure investment we recommend looking into Sarasota County where you would benefit from coastal living, cultural & social opportunities, and less congestion.

We would be happy to provide you with additional information of opportunities available.

Good luck,
The "Eckler Team"
Century 21 Alamsr And Associates
Venice, Fl 34285
ecklerteam@comcast.net
941-408-5363
0 votes
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