Dozens of Florida homebuyers have been left in limbo after builder Van Der Valk Construction filed for bankruptcy in late April, before it had finished many of the properties on which it was working.
Many of these unfinished homes were to be their owners’ retirement havens, a dream they had spent all their life savings to realize. Now, many of these properties are uninhabitable shells that owners have no funds to fix and complete.
“It’s a living nightmare,” Frank Sherrill, who hired Van Der Valk Construction in September 2022 to build his retirement home, told Realtor.com.
Why It Matters
For decades now, the Sunshine State has been the number one dream destination for Americans ready to retire. In 2024, according to nonprofit AARP, previously known as the Association of Retired Persons, 19.9 percent of U.S. older adults moved to Florida specifically for retirement.
But the state is gradually becoming a risky choice for this category—which can be especially vulnerable to financial shocks—as natural disasters are becoming more frequent and more severe, home insurance costs and homeowner association (HOA) fees are rising, and the housing market is experiencing a correction.
What To Know
The Sunshine State experienced a construction boom in the years following the outbreak of the COVID-19 pandemic, when a sudden surge in demand encouraged builders to build more new homes than anywhere else in the country.
Among these builders was Van Der Valk Construction, a family-owned and operated firm located in Citrus County. The company was building several homes in the county, including Inverness Village 4, when it filed for Chapter 11 bankruptcy on April 30. In the documents, Van Der Valk Construction declared more than $1 million in liabilities, but less than $100,000 of assets.
Filings show that as many as 58 homebuyers have been affected by the company’s sudden bankruptcy filing, as reported by Realtor.com.
Newsweek contacted Van Der Valk Construction and its legal representative, Ocala attorney Richard A. Perry, for comment by email on Tuesday morning outside standard working hours.
What People Are Saying
Talking to ABC Action News, retiree Frank Sherrill admitted to crying “a little bit” sometimes thinking about his situation, “because it’s been hard.” The home that Van Der Valk Construction started building for him in late 2022, and never finished, is a 1,430-square-foot property with three bedrooms and two bathrooms.
“I need flooring. I need all the baseboards put in. All the framing for the doors,” he told the news company earlier this month.
Sherrill is among dozens of homebuyers in Citrus County whose homes have been left unfinished by Van Der Valk Construction, and who are now struggling to find enough funds to finish on their own. He paid nearly $200,000 for the home Van Der Valk Construction never finished; he still technically owes the remaining 10 percent of the contract, $18,500.
Another homeowner whose retirement home was left unfinished, Dyandria Darel, told ABC Action that she was “devastated.” She was supposed to move from New York to her Florida retirement home, but the homebuilder’s bankruptcy has thrown a spanner in the works.
“It’s not only a retirement home, it was virtually my entire life savings,” she told ABC. “I put the money down on this house in 2022. It’s now 2025.”
What Happens Next
Under bankruptcy law, Van Der Valk Construction will continue to operate while legal actions are temporarily suspended. The company is expected to present a reorganization plan by July 29, 2025, which must be reviewed and confirmed by the bankruptcy court and approved by a majority of Van Der Valk Construction’s creditors.
Are you among the Florida homebuyers affected by Van Der Valk Construction’s bankruptcy? I’d like to hear from you. Contact me by sending an email to [email protected]
The post Florida Homeowners ‘Living Nightmare’ As Construction Company Goes Bankrupt appeared first on Newsweek.
