Last week one of those mega housing developers, T.H. Properties (THP) closed up shop in the Philadelphia suburbs. THP suspended operations quite abruptly for “re-structuring”. Many people have put deposits on homes and some have houses half-built. So, what are they to do?

While I knew this company was big on visibility (in a somewhat obnoxious, in-your-face way at times that grates on those of us who prefer open space over housing developments), I didn’t realize that in 1997 T.H. Properties was named one of “Americas Fastest Growing Companies” by Inc Magazine. So, they weren’t some fly-by-night operation. Yet that was then and this is now.

New stories are plentiful with a wide variety of figures floating about in terms of the amount of money the company owes employees, credit lenders, and homeowners. The Times Herald has a recent article on this.   Just think millions and millions and you’ll be in the ballpark.

While the company and its employees have their own set of challenges, what about the average home buyer who just plopped down their life’s savings to put a deposit on a new home? What are their rights and options? In quick response to this particular circumstance, some local people affected by the THP debacle created a website called Wheresbuilder.com to offer up a forum for people affected this. As you might expect there is a lot of complaining, blaming, and name calling going on but there are some resources as well.

One in particular from a realty lawyer sets forth some great Q & A for people who find themselves in this situation.

NBC News gives their take on the matter in “Builder Shuts Down: Homeowners Worried” and suggests consumers file a formal complaint with the Attorney General’s office to engage the help of Consumer Protection agents.

Of course this situation isn’t unique to the Philadelphia area or THP. Topix reported recently that C.P. Morgan (homebuilder in Indiana) is also going out of business. If you look over the last year or so the list is much longer.

With the challenges in the housing markets, lending markets, and economy in general, it is a fine reminder to always do your homework and put as many protections in place for yourself as possible when undertaking a large purchase such as a home. Check out the local Better Business Bureau, Consumer Affairs offices, and similar Consumer Protection agencies in your locality and state. From what I could tell from some of the rants here locally, taking time to do some thorough Google searching on your builder can also save you headaches as well.

Most importantly, with any high-stress moment in your life, remember to take a moment of pause, step back and deal with the source of the problem as methodically as possible.   Decisions and actions taken while in a panic never serve anyone very well in the long run.

Have you experienced a situation like this?   What did you do to protect yourself (before or after the fact)?   Would love to hear in the comments…

Photo Credit: stock.xchng

Paula Gregorowicz, owner of The Paula G. Company, offers life coaching for lesbians to help you gain the clarity, confidence, and courage you need to have success on your own terms. Get the free eCourse “5 Steps to Turn Fear Into Freedom” at her website