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,
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!