I received a blog comment that asked if there was a follow-up on the Maravilla Homes debacle. Maravilla was a heavily-advertised luxury home community development in Northwest Austin. We’d first learned of the problems at the subdivision on the radio. After some digging, we also found a KVUE news story that confirmed our suspicions of Maravilla builders going under.

I need time to verify this, but according to a recent comment on this blog about the story:

"…this guy stuck everyone with his bills; embezzled about 1/2 million; and is now declaring bankruptcy. he built w/o permits; and had his lawyer lie to homeowners."

There hasn’t been much reported since the story broke earlier this Spring. Unfortunately, builders can go out of business before, during and after a subdivision development. I feel very sorry for the home owners and investors who have to endure this pain. Once the builder or developer files bankruptcy, financial restitution will be limited.

Read the full previous post on the financial troubles of the Maravilla development.

See the KVUE News Story on YouTube…

Visit the Maravilla Consumer Issues Blog: Living The Dream.

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This entry was posted on Monday, July 9th, 2007 at 7:49 am and is filed under Austin Real Estate News. You can leave a response, or trackback from your own site.