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Neumann Homes Inc., which built homes in Colorado, has received bankruptcy court approval to complete homes that are under construction and to return earnest money deposits paid by customers to purchase homes that have not begun construction. The company expects to return about $875,000 in earnest money.
The homes under construction can be completed in conjunction with the lenders that provided construction loans to the company. The lenders are receiving titles to the homes in exchange for the reduction of debt owed by the company, the assumption of claims and other consideration. The lenders will work with the customers to complete the homes and fulfill the contracts. All but one lender, Bank of America, agreed to the program.
