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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: bozwood who wrote (2015)	11/10/2003 12:25:48 PM
From: eddieww	Read Replies (1) \| Respond to of 110194

Maybe you or someone else here can help me understand how these homebuilders function. First of all, the contractual counterparties typically are whom? Individual homebuyers? REITs? Consortiums or Companies with undeveloped land? It takes a while from the signing of a contract to when the home is user-ready. How do the homebuilders lay off default risk from the time they start investing capital (building the houses) to the time a mortgage lender assumes the risk? Do these big homebuilders like Toll or Beazer buy tracts and build on spec? I'm obviously interested in who is at risk if the bottom falls suddenly out of new housing demand.