Major Homebuilder Shutting Down

Barratt-American built thousands of homes around county

One of San Diego's biggest homebuilders is shutting down.

Barratt-American built the Nantucket development, in Leucadia, and thousand of other homes in San Diego. Last year, though, the housing meltdown forced Barratt to reorganize, under court protection. The bankruptcy court now says that Barratt has no future and must shut down.

Some of the Leucadia homes are still unfinished, while other lots are empty. Bank of America foreclosed on those properties and still owns them.

"No one ever speaks to us and tells us what's going on and what the plans are, nor has Bank of America, so, pretty much, you know, we spent a bundle of money, and we're, like, let out to dry, basically," said Deborah Molnar, a Barratt-American homeowner.

Barratt's president said he tried to work out a deal with the Bank of America to finish the homes, but, he said, the bank would not cooperate.
Bank of America issued a statement on Tuesday afternoon.

"Barratt filed Chapter 11 bankruptcy late last year," Bank of America said in the statement. "The bankruptcy court on Aug. 6 entered an order converting the case to Chapter 7 in part because of  issues brought to the court’s attention by the Committee for Unsecured Lenders, including the fact that Barratt acted in bad faith, failed to disclose and obtain court approval for certain payments and has allowed the  property it owns to deteriorate (see filings). Many of the referenced Nantucket lots are not property of the bank. As to those the bank does own, the bank has had to resolve certain mechanic's lien claims before it could proceed to sell those properties. The bank is now attempting to sell those properties in which it has an interest."

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