Neumann Homes Bankruptcy Sale (Illinois)

Lisa Thomas, one of the last employees of Neumann Homes, announced on the mailing list that they are selling their office stuff.

From: Lisa Thomas <lisa.thomas@ neumannhomes. com>
Date: Feb 1, 2008 8:46 AM
Subject: Bankruptcy Sale

Neumann Homes



4355 Weaver Parkway

Warrenville, Illinois


Friday, February 15th

Noon – 7 p.m.


Saturday, February 16th

7 a.m. – Noon

  • Office equipment including: computers, monitors, fax machines, printers, copiers, audio video equipment, phones, etc.
  • Office furniture including: desks, chairs, filing cabinets and shelving.
  • Office supplies including: training books, binders, folders, organizational & desk supplies

************ ********* ********* ********* ********* ********* ********* ********* ********* ********* **

900 A. Knell Road

Montgomery, IL


Saturday, February 16th

7 a.m. – Noon

Everything must be removed on the day of sale.


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Neumann Homes filed for Bankruptcy today!

Chicago Tribune reports that Warrenville-based Neumann Homes files for Chapter 11 More than $100 million in liabilities listed in document submitted 10 days after the builder ceased operations.  read more…

We’ve been wondering why Neumann Homes hadn’t filed earlier will be addressed later today by Kenneth Neumann, the CEO of Neumann Homes.

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Neumann Homes will be forcing homeowners to purchase homes?

In the last episode of this saga, we learned that Neumann Homes is planning to file Chapter 11 bankruptcy. As of yesterday, Tuesday October 30th, Neumann Homes had not filed. No one has been able to explain why they haven’t filed with the court yet.

According to reliable sources, Kenneth Neumann, the CEO of Neumann Homes, is planning to force the home buyers to purchase the Neumann Homes. With reports of shoddy building of the houses, many families are opting to forgo purchasing the Neumann houses and are attempting to receive their earnest money back.

In many cases, Neumann Homes had violated the purchase contract by not finishing the homes within 150 days of the issuance of the building permits (paragraph 12). The contract states in paragraph 21 sub paragraph A:

  • Negotiation:
    • When either party feels a dispute has arisen, that party shall notify the other party in writing of the nature and details of the dispute (“Dispute Notice”). Within fifteen (15) days after such Dispute Notice, a meeting shall be held between the parties to begin a good faith attempt to negotiate a resolution. During this procedure the parties will communicate directly with each other in an effort to reach an agreement that serves the interests of both parties.

All of the real estate lawyers I’ve asked, if either party does not respond to the Dispute Notice, the requirement of Mediation and Mandatory Binding Arbitration is no longer binding. The most that Neumann Homes is likely to be able to do is to keep the earnest money but even that is questionable.

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Neumann Homes files Chapter 11 Bankruptcy

Neumann in Chapter 11

October 22, 2007

The crash in the Chicago-area market for new homes has claimed its biggest casualty. Suburban builder Neumann Homes Inc. said Monday it will file for bankruptcy and has laid off most of its employees.

Warrenville-based Neumann blamed its predicament on a drop of more than 50 percent in annual sales within the Chicago and Denver markets. It also pointed to a decision in 2005 to invest in the Detroit market, a move it said cost the company more than $60 million.

Read more at the Chicago Sun Times

To say that I’m a bit upset is a bit of an understatement.

Corresponding articles at Chicago Tribune, WBBM News Radio, Chicago Daily Herald, Crain’s Chicago Business News and a second article at Crain’s Chicago Business News.

For those of you that don’t know chapter 11 bankruptcy is a restructuring of the company.

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