We have all heard how home building/construction companies are facing many problems right now due to buyers pulling out or simply not being interested right now. However, what many have not addressed up until now is the customers who already bought homes, still want them, and are not getting them.

Recently a Florida based company, Levitt & Sons, filed for Ch.11 bankruptcy due to the market.  This is only one of many that have taken the same steps. Ivy Zelman, an independent analyst on housing, says that the situation will only get worse after the New Year, "There are going to be a significant number of insolvent builders."

Depending on the state, terms of contract, etc, the buyers could lose all or a portion of their deposit or have to wait a substantial amount of time for their home to be finished based on the troubles the builder is facing.  Another company, Turner-Dunn, filed for Ch. 11 last year and it is reported that over 150 homeowners had already given deposits from anywhere from $2,500 to $28,000 and that so far Turner-Dunn has said that this will not be tied into escrow but instead used to fund construction.