Despite all this talk of a “recovery,” of the stock market and a return to profitable banks, things still seem a little shaky further down the food chain and the “trickle down” effect of billions of bailouts does not seem to be “trickling down,” to where it is needed. David Bagwell, a luxury home developer in Colleyville, Texas, has placed three partnerships that own parts of his development into bankruptcy rather than lose the undeveloped land in them to foreclosure.
According to the Star telegram, David Bagwell said Tuesday that the group that now holds the debt of those partnerships had asked him to pay up.
Bagwell’s partnerships are Old Grove Ltd., Broughton Ltd. and Broadland Ltd., according to court filings. On Monday, he filed petitions seeking Chapter 7 liquidation for the partnerships, which means that the remaining lots in those subdivisions will be sold to pay creditors.
There are between one and 49 creditors in each filing, Bagwell said, and assets and liabilities are estimated at $1 million to $10 million in each filing. “It’s going on all over the country. It’s a sign of the times,” Bagwell said, declining to comment further.
One thing is certain – regardless of all the talk – there are still massive foreclosures going on around the country and the amount of bank-owned properties and HUD foreclosures is still rising, even in the so-called luxury sector. Many of the homes in this particular development are priced at over $1 million and that is not good when the developer goes bust, because it pulls down the prices across the development.
