Recent Homebuyers Left In Lurch In Unfinished Subdivisions As Arizona Homebuilder Takes A Hike; Mechanics' Liens, Worthless Home Warranties A Concern

The Arizona Republic reports:

• A Scottsdale-based home builder is walking away from its investment in a south Chandler neighborhood, leaving unfinished houses and dozens of empty lots in foreclosure - and making residents who already bought homes concerned for the future of their property. Randall Martin Homes is abandoning its property in four Valley developments, including Portello at Dobson Creek, a subdivision southwest of Queen Creek Road and Arizona Avenue.

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• [T]he builder's lien holders will take over ownership of the vacant lots and unsold homes, which could cause a three- to five-year delay in completing the development. [...] Since they've moved in, [one recent homebuyer couple] hasn't heard from the builder, who was supposed to complete final repairs within 30 days. The only company they have heard from is a subcontractor threatening to put a lien on their house if the builder doesn't pay a $500 bill.

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• Though this is an unusual case of a homebuilder abandoning his property, [a spokeswoman with the Arizona Department of Real Estate] said there have been other signs of troubled developers in the Valley - especially mechanics liens, like the one being threatened against the Diefenbachers, being placed against homes.

For more, see Builder walks away from Chandler development.

In related stories, see:

• Arizona Republic (2-27-08): Builder set to abandon Gilbert lots (Randall Martin lets 4 area properties go into foreclosure),
• East Valley Tribune (3-23-08): Homebuyers seek help after builder walks away.

For other posts on builders accused of stiffing customers & subs, go here and go here. contractors stiff subs customers zeta