Q: I am hearing Kara Homes is having financial problems?
“Yes, I heard that Kara Homes, the builders of the “Tradewinds” homes, is going to file for bankruptcy.”
“And what is your source? Did you hold a seashell to your ear and hear this information?”
“No, I did not. Apparently instead of buying options for land, they paid top dollar purchasing land up and down the parkway and now can't finance building on all their properties.
“I put money down on a Kara property seven months ago, and it's still not started. I am trying to get my money back as per terms in contract.”
“It's no secret Monmouth/Ocean market is hurting and Kara is no different than Centex, Lennar, Hovnanian, or anyone else.”
“Confirmed on the Kara Homes bankruptcy—letter to employees has already gone out stating the company is filing Chapter 11. The letter was sent to employees on Wednesday, Oct. 4.”
“I know a former employee of Kara Homes. The employees have not been paid for the previous three weeks of work. The letter said to go to the court clerk and file to see if you can get any money.”
“I am a former Kara employee—I got out before it was too late. This is all true. Kara is in WAY too deep to survive. They purchased a ton of land and are totally in debt. Interest alone was killing them monthly.”
“This guy has been screwing people out of money for years.”
“Then again he did also give deep discounts on units to subs/vendors Kara owed a bunch of money to.”
“So it's a done deal. Kara Homes officially filed late yesterday afternoon. Homeowners requesting refunds have already started calling my office (I work for one of the subs). They owe my company close to a million dollars. This is going to hurt ...”