Kara Homes anticipates filing for bankruptcy Posted by the Asbury Park Press on 10/5/06 STAFF REPORT
East Brunswick builder Kara Homes Inc., one of the biggest home builders in Monmouth and Ocean counties, anticipates filing for Chapter 11 bankruptcy, a company official said in a letter given to laid-off employees earlier this week.
Roberta W. Schultz, vice president of human resources and organizational development at Kara Homes, said in the note that the employees' jobs were terminated as of the end of the day Tuesday.
Insane. After 10 years of record profits the good HB will last another 10 years w/o building a single home. With material cost down 34%, labor cost down by 20% and sales down by 8% profits should be double of what they were last year. I am going gangbusters with my (little) operation, laughing all the way to the bank. Who stole Kara's profits?
"Qualified buyers will receive all of those benefits and a check at closing for the equivalent of 12 months principal and interest payments when they purchase a home at a participating community."
Starting October 15 last year, Kara offered to pay the first year's worth of anybody's 30 year mortgage (with 20%down etc) - at closing, so the buyer was getting paid by the builder instead of the other way around, the builder was paying the bank etc. Hardly too surprising that that blew up in a year.
I see what happened. The didn't give the houses away, the paid people to take them off their hands. Unbelievably stupid. If Exxon would pay you to fill up your tank, would you go anywhere else to pay for gas? Glad Kara is not in my area. I continue to sell homes at record profits. I can get through a 10 year downturn easily. Will rent the homes I cannot sell or mothball them and leave them empty for a while. No biggie. If there weren't any Kara's around there wouldn't be a problem for any HB.