As a somewhat new Austinite, I am always looking for a way to meet new people and grow some roots in Austin. To that end, I recently joined the Junior League of Austin. Earlier this week we had an orientation for the provisional class's project FIT (Food In Tummies). While at that meeting I met a few of the women I will be working with in the future. They asked everyone to sit based on what part of town they live in. So, I actually got to meet people who live in South Central Austin. Which was great, because I was beginning to think that EVERYONE lived in North Austin. During that meeting I met a woman who lives one street over from our future home. She told me her building story, which is the focus of the post today.
Gabi, our future neighbor, and her husband moved into their house a little over one year ago. Like us, they contracted to have their house built, but they used Newmark Homes. After enduring the frustrating yet exciting building process they received a letter on the Saturday before their Tuesday closing stating that the parent company of Newmark Homes had filed for bankruptcy and that they could renegotiate the terms of their contract or walk away from the house. When a company files for bankruptcy a trustee is appointed to handle all of the contracts of the bankrupt. The trustee has the right to proceed under the contacts of the bankrupt or cancel the contracts, leaving Gabi and her husband without an enforceable contract on a house that they selected the layout and design elements for and had painstakingly endured the building process of in addition to having the expectations of moving into a brand new home within the week.
Well, they decided to renegotiate the terms of the contract. But I wonder, who is in the better negotiating position at this point? One the one hand, the future homeowners have had undoubtedly begun to this of this house and their home and can envision themselves living in it. On the other hand, the last thing a bankruptcy trustee would want is another piece of property to dispose of, when he already has a willing buyer whose mortgage has been finally approved.
Gabi also said that she loves the neighborhood, that the neighbors are friendly and she enjoys how many of the neighbors take walks around the community.
Gabi, our future neighbor, and her husband moved into their house a little over one year ago. Like us, they contracted to have their house built, but they used Newmark Homes. After enduring the frustrating yet exciting building process they received a letter on the Saturday before their Tuesday closing stating that the parent company of Newmark Homes had filed for bankruptcy and that they could renegotiate the terms of their contract or walk away from the house. When a company files for bankruptcy a trustee is appointed to handle all of the contracts of the bankrupt. The trustee has the right to proceed under the contacts of the bankrupt or cancel the contracts, leaving Gabi and her husband without an enforceable contract on a house that they selected the layout and design elements for and had painstakingly endured the building process of in addition to having the expectations of moving into a brand new home within the week.
Well, they decided to renegotiate the terms of the contract. But I wonder, who is in the better negotiating position at this point? One the one hand, the future homeowners have had undoubtedly begun to this of this house and their home and can envision themselves living in it. On the other hand, the last thing a bankruptcy trustee would want is another piece of property to dispose of, when he already has a willing buyer whose mortgage has been finally approved.
Gabi also said that she loves the neighborhood, that the neighbors are friendly and she enjoys how many of the neighbors take walks around the community.
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