AZCentral just reported that Fulton Homes has filed for Chapter 11 Bankruptcy protection. This is a surprising development as Fulton Homes has been one of the more reputable and appreciated builders in the area. It’s also quite a turn of events for a company whose founder donated so much to Arizona State University years ago.
Ironic: Fulton Homes’ site wants to help you determine if a foreclosure (or a new build by Fulton Homes) is in your interest.
Fulton Homes has also been responsible for some of the most impressive housing developments including Fulton Ranch in South Chandler. They were also the developer for Alisanos in Tempe, one of their signature communities. Fulton Ranch is still in development so how the news affects home sales and construction there and elsewhere for that matter, will be an interesting question going forward.
Call About Your Home Warranty Now
As a tip given Trend Homes Inc.’s recent bankruptcy process (see Trend Homes Not Honoring Home Warranties), I recommend homeowners of Fulton Homes homes that are still within the first year to two years (if the warranty is actually this long) of purchase place a call immediately to understand how their home warranty will be treated and move aggressively to get home warranty work performed if possible. There is no guarantee as to how Fulton Homes will reemerge here and given the example of Trend Homes, it makes sense for these homeowners to be intentional with regard to their home warranties through the builder and any work that needs to be performed.
More broadly speaking, the news here highlights the growing uncertainty and risk for home buyers considering buying a new home in a developing community. There is no doubt that a community whose future completion may be in question could seriously hurt home values in that community. I would imagine that this news will signal to buyers that resale may present a lower risk than new home communities right now.
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