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The first of Many?

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Mike Garrett RAA

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Colorado
Beazer Cuts Back on Home Building
Beazer Homes USA Inc., one of the nation’s largest home builders and one that has been hard hit by the housing slowdown, announced Friday that it will shut down operations in several major markets.

Beazer will stop building in Charlotte, N.C.; Cincinnati, Ohio; Dayton, Ohio; Columbia, S.C.; and Lexington, Ky. The company will finish any homes under construction and continue to service the communities it has built. Operations in these areas represent only 5 percent of the company’s home building business.

The company, which Bank of America is in the process of acquiring, also will stop offering mortgages and refer customers to Countrywide Financial Corp., which is now also owned by Bank of America.

Beazer has been under investigation by the U.S. Attorney’s office in connection with violations of federal lending rules.

Source: The Associated Press (02/01/08)
 

Lawrence R.

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I can't speak to all of those markets, but Columbia doesn't appear to be in a slump. It is just now all the dumb, uneducated poor credit buyers who were grateful to get screwed as long as they could own a home are out of the market here now.

SC is forever a shaky credit state; when I worked for GE Capital we had the 2nd strictest lending policy for SC. A large percentage of lenders won't even do business in SC. For instance, last time I checked, Chase Bank won't do a HELOC in our state, period. Too risky.

When subprime customers are the last people you want on your books, SC is the last state in which to loan your money. I am sure this is impacting Beazer's ability to make a go here.
 

NC Appraising

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Charlotte Market

I heard on the news about Beazer pulling out of the Charlotte market, but the news reported that it was due to the bad publicity that they received.
 

Couch Potato

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I heard on the news about Beazer pulling out of the Charlotte market, but the news reported that it was due to the bad publicity that they received.
Their name is mud in Charlotte due to the highly publicized problems with foreclosures. The bad publicity is not forcing them out, it's the poor sales as a result of the bad publicity. (Same thing really.)

The Charlotte market is softening a bit from what I have read. The pullout of Beazer will likely help the market.
 

NC Appraising

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Couch,

About three or four months ago Beazer said that they are getting out of the lower-end starter communities, and would be concentrating on more higher-end and commercial projects. According to the commercial guy's, their section is starting to slow?

I'm use to the news not reporting the whole story.

Go Nick Mickey for Sheriff; I love you Al Sharpton!:new_all_coholic: :rof:
(Charlotte humor)
 

Karl

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Arizona
Engel parent company filed for Bankruptcy. Centex is on the chopping block KB has just about halted asny more production. IF there arte still those that believe this will turnaroubnd in 2009 I have a Bridge in Brooklny to sell you.
 

Couch Potato

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Engel parent company filed for Bankruptcy. Centex is on the chopping block KB has just about halted asny more production. IF there arte still those that believe this will turnaroubnd in 2009 I have a Bridge in Brooklny to sell you.
Good news for the industry.
 

murray stroupe

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Tennessee
Re; Beazer hard hit

Beazer Cuts Back on Home Building
Beazer Homes USA Inc., one of the nation’s largest home builders and one that has been hard hit by the housing slowdown, announced Friday that it will shut down operations in several major markets.

Beazer will stop building in Charlotte, N.C.; Cincinnati, Ohio; Dayton, Ohio; Columbia, S.C.; and Lexington, Ky. The company will finish any homes under construction and continue to service the communities it has built. Operations in these areas represent only 5 percent of the company’s home building business.

The company, which Bank of America is in the process of acquiring, also will stop offering mortgages and refer customers to Countrywide Financial Corp., which is now also owned by Bank of America.

Beazer has been under investigation by the U.S. Attorney’s office in connection with violations of federal lending rules.

Source: The Associated Press (02/01/08)
=====================
Sounds right,& probably good for the industry,Mike;
homebuilder getting out of lending business.
 
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