I heard about this a few days ago, but now the media has picked up on it. Randall Martin Homes, a smaller sized builder has announced that it is letting the lender take back the remaining of their vacant lots in certain communities. Surprise’s Marley Park, Avondale’s Roosevelt Park, Chandler’s Dobson Crossing and Gilbert’s Higley Park are the communities effected by this decision. Obviously, they couldn’t make their payments in the Valley’s Housing Market downturn.

Existing homeowners will not be affected, other than having a number of vacant lots throughout their neighborhoods. Randall Martin has committed to finishing any existing contracts with homes under construction, but will not be starting any new ones in those areas.

Two other builders, Turner-Dunn in Pinal County and Trend Homes Inc. in Gilbert, have had similar problems in the past two years. A private equity company purchased Trend last month and is sending it through bankruptcy reorganization. Turner-Dunn walked away from 200 unfinished homes in 2006.

- Cathryn Creno, azcentral.com

My take on this? I’m sure another builder is already in negotiations with the lender to purchase the lots at an AMAZING price. This happened out in Queen Creek a year or two ago. A number of lots we sold at pennies on the dollar from a builder who just couldn’t financially compete with the market. The result was 3,000-4,000 sq ft homes, fully loaded with every upgrade you can imagine, being offered at $250,000 starting price. Yeah, I wish I would’ve jumped on THAT opportunity! It’ll be interesting to see over the next year who capitalizes on the situation, and at what price they release the new homes. I also anticipate at minimum of 2 other builders doing the same thing this year.

Here’s another article on it.