Homeowners aren’t the only ones in the midst of foreclosure these days. New home construction has slowed over the last few years and many companies have gone out of business. Those that are left still trying to bring new homes into the community have a tough market to battle, some of which have ended up in foreclosure.
It isn’t uncommon for a new home to halt construction when the builder ends up in foreclosure. Many homes are left half completed and eventually abandoned, leaving the bank with the responsibility of selling the incomplete property. Even if the property currently being built isn’t the one being targeted by the bank, companies that can’t offload their properties are finding it beyond challenging to maintain any of their properties.
Major home builders, such as KB Homes and Lennar Corp., have seen a major drop in stock prices over recent years. Once a reliable stock for investing, many new home builders are too much of a risk for many investors. Even with the mortgage settlement deal on the way, industry analysts are predicting that new home builders will be the last to see recovery for any foreclosure and mortgage debt problems.