Cancellations of Homes and Condos Driving Homebuilders' Losses

4 de may de 2007

<body><div id="article"><tr><td height="28" valign="middle" width="184"></td><td valign="middle" width="185"></td></tr><h1>Cancellations of Homes and Condos Driving Homebuilders' Losses</h1><p>May 4 (EIRNS) - Hovnanian, the 6th largest homebuilder, had far larger losses in the second quarter than expected, due to "exceptionally high cancellations" in the Fort Meyers area of Florida.</p><p> <i>Bloomberg</i> reports that such cancellations are becoming rampant across the industry as values decline, and speculators recognize that they will lose less by dumping their down payments.</p><p> <i>The Wall Street Journal</i> quotes Hovnanian's CFO, Larry Sorsby, whining that many buyers are suing to get out of their contracts, based on claims that they were misled by Hovnanian or others.</p><p>"Ambulance-chaser lawyers" now have adds in Palm Beach: "Your contract for the purchase of a new house or condo may be illegal -- To see if you are entitled to a refund, call today...."</p></div></body>