Homebuilder Mercedes Homes Inc. said Monday it has filed Chapter 11 petitions in U.S. Bankruptcy Court in West Palm Beach, Fla.
The Melbourne, Fla. company said it has suffered from prolonged weakness in the housing sector of its operating markets. Mercedes has also suffered liquidity strains due to the federal takeover of one of the main lenders in its lending syndicate.
Mercedes Homes is developing 15 communities in Jacksonville and St. Augustine.
The company said it hopes to operate normally as it reorganizes. In a statement, the company said it "expects to move quickly through the reorganization process and to emerge from its reorganization proceedings better capitalized and financially stronger."
Mercedes Homes is a 25-year-old company employs about 400 people who sell, and construct, homes in more than 80 communities in Florida, Texas, North Carolina and South Carolina.
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8 comments:
More proof Mercedes Homes (the Bueschers) are liars and frauds. Here are their two posts on October 13, 2006below. They speak for themselves:
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Homebuilding Industry News said...
Many builders, such as Mercedes Homes, continue to hang in. With the government interventions and bail-out, everyone remains optimistic.
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October 13, 2008 1:33 PM
Anonymous said...
That would be Mercedes Homes.. Thanks!
October 13, 2008 1:57 PM
Now that Mercedes Homes has filed bankruptcy January 26, 2009, why do they 'NOT' have it on posted on their website?
Why have they 'NOT' told 'MOST' of the current homeowners they have filed bankruptcy?
They are still being dishonest to anyone foolish enough to buy a spec home from them, even today.
There is an answer, they don't care about current homeowners, nor future home buyers. It's all about the Bueschers and their show me the money attitude!!
Mercedes Homes - I hope it is proven in court that you have committed fraud and someone goes to jail.
To all the current homeowners, your warranty is now worthless.
To anyone thinking about buying a Mercedes Home because you think you are getting a 'good' deal, your'e not.
More bad news out of the Mercedes Homes bankruptcy filing:
Bankruptcy court order: 1/30/09
"The builder now has authorization to honor home warranties, but it is NOT obligated to do so. There is a limitation to this authorization – Mercedes Homes CANNOT spend more than 1% of a home’s final sale price on warranty claims".
Great news a Mercedes Homes warranty is now -1% of homes's final sale price or this statement "It (MERCEDES HOMES )is NOT obligated to do so."
Which do you think Mercedes Homes will opt to do? Either way it's a win-win for them, NOT the homebuyer.
No matter what you paid for your Mercedes home 1% won't cover much in the way of warranty work.
A quote from a sub contactor:
"Look on Mercedes website at their list of available spec homes...Those that built a year ago and still have a year left on the electrical/plumbing/mechanical went for a lot more that that.
... There are alot of good reputable builders out there that stand behind their work. They are worth standing up for. IMHO this is not one of them.
Since I have made it clear I have done work for MH any questions you at MH have for me, don't PM just post it...I have continued to stand behind my work even though they presently owe me $$. They have also lied to me personally about payment. This I learned thru their own BK filing".
Mercedes Homes are still selling their spec homes to those that will have liens placed on them and they know it.
Here is another quote:
"The only way MH will honor the warranties is if it does not cost them a penny. If the builder in that community can do it themselves, then it will be fixed, other than that the home owner's screwed.
There are also a lot of home owners who have recently closed getting Liens placed on their properties. Not good!"
Mercedes Homes did file Chapter 11 Bankruptcy on January 26, 2009 that's true. However, what the public does not know is Mercedes Homes had subs, vendors, and other creditors doing work on the day of the filing. Why is this important? There are invoices dated the day of the bankruptcy was filed for $$$millions-Yes, I did say MILLIONS of dollars, the day of filing. This is wrong, it should be fraud!
What about the class action lawsuit against the labor practice of overtime pay that was settled? No one compensated, (as usual). What about all of the employee's esop money. Legally what could be done?
My family is furious with Mercedes homes. We have been battling them for years due to losing our brand new home and everything we owned to massive mold. They refused to help us in any way even after our insurance denied our claim. My family lost everything. We finally came to a PUNY settlement offer a few months ago just so our family could have some closure to this NIGHTMARE. They made the first 2 of 3 payments and then refused the last payment in Dec. and low and behold they declare bankruptcy. They are sneaky and knew exactly what they were doing - they totally wiped out several families and businesses in our area and I am FURIOUS to know that they are able to wipe the slate clean, mess everyone over and then start fresh. Through all of this mess, we have learned one thing...the court systems in the country are aimed at helping big businesses who have big pockets and not the innocent, hardworking families out there. This company deserves to go completely belly up and the owners deserve to lose everything for thier poor and horrible way of totally messing over innocent people/
Mercedes has received a court authorization to honor home owners’ warranties and other obligations However, it might be cold comfort to home owners since the obligation to honor warranties is limited to 1% of the sale price.
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