Banks to take back houses/lots from builder

Banks are taking back almost 100 building lots and partially built houses belonging to Prospect Homes, a local builder that filed for Chapter 11 bankruptcy protection in June.

The builder has not been paying interest on those loans, according to financial statements that must be filed with the bankruptcy court.

Most of the properties, which are located in suburban areas of the Richmond area, are worth about half as much as banks are owed, according to assessments in the bankruptcy court filing . Even in bankruptcy protection, the company is supposed to pay a host of banks a total of about $45,000 per month.  Prospect has not paid since at least August. Read more

Local builder files for bankruptcy protection

Prospect Homes, a local homebuilder for more than 25 years, filed for Chapter 11 bankruptcy Tuesday.

The company, owned by President Joe Audi, owes creditors between $50 million and $100 million, according to the filing. More than 200 companies and individuals are owed money.

Many businesses listed as creditors were not surprised by the news, as checks had been late in arriving for at least six months. But several local business owners said they kept working with Prospect after Audi met with them, in part because they wanted future work and had known the company for decades. Read more