McStain Homes files for a Chapter 11 bankruptcy after 45 years in business, stating “McStain will no longer be able to service your new home warranty.”

McStain Homes announced today that they have filed for Chapter 11 bankruptcy on May 28th, 2009.  The workout plan McStain is proposing is “to operate within the bankruptcy to complete and sell the homes that are finished or under construction using a small remaining group of key employees. (The Indian Peaks South Neighborhood and several recent homes under construction are operated in separate LLCs and are not a part of the Chapter 11.)”

Today’s press release from McStain owners Tom & Caroline Hoyt outlined that those of you who have purchased McStain homes, this filing means that McStain will no longer be able to service your new home warranty. You will now be responsible for calling your own service people when you have a problem. The names and numbers of the key contractors McStain used to build each home are listed inside one of the kitchen cabinet doors. For purchasers whose homes are still under construction, McStain will be purchasing a 3^rd party warranty.

Please contact your Perry & Co. Agent with questions of how the McStain Bankruptcy may effect you, or for a list of reputable 3rd Party Home Warranty companies.