Some homebuyers in Citrus Springs, Florida, are in shock after the Van Der Valk Construction company filed for Chapter 11 bankruptcy in April, leaving many homes unfinished.
The Citrus County-based company is leaving many homeowners, mostly retirees, holding the bag financially.
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“I have no money now,” said Dyandria Darel, a homeowner planning to move into this Florida retirement home from New York City, in an interview with ABC Action News.
“It’s not only a retirement home, it was virtually my entire life savings,” Darel said. “I put the money down on this house in 2022. It’s now 2025.”
The unfinished homes are sitting in the Florida sunshine as the homeowners consider their limited options in the midst of this financial nightmare.
Unfinished homes destroying retirement dreams
Frank Sherrill first hired Van Der Valk Construction to build a Citrus Springs home in 2022. When the company filed for bankruptcy on April 30 of this year the house was still unfinished.
“I need flooring. I need all the baseboards put in. All the framing for the doors,” Sherrill said. “There’s a few times where I’ve, you know, I cried a little bit, you know, thinking about it, because it’s been hard.”
Sherrill, an Illinois native, paid the company $200,000 in cash upfront to start construction. While the house has a roof, it’s far from finished. According to the latest reports, he’s currently talking to another contractor about finishing the house. But the additional help will mean additional expenses.
As the situation drains Sherrill’s bank account, he’s not alone. Many other homeowners, mostly retirees, are also seeing their retirement savings dwindle as this process drags out.
Van Der Valk Construction claims ongoing legal issues are partially to blame for the bankruptcy situation.
According to the bankruptcy filings, at least 58 homeowners will take a financial hit of some level. Beyond homebuyers, subcontractors and employees will be out of job.
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Beyond unfinished homes, Van Der Valk Construction has received extensive criticism from residents of the Inverness Villages Unit 4 about the neighborhood’s poorly built infrastructure. The Citrus County neighborhood was built without a drainage system or paved streets.
As the years unfold and hurricanes inflict wind and rain on the area, the sandy streets have trapped vehicles in some places and eroded away in others.
“I literally had to go buy a 4×4 Jeep, so I can get in and out when it’s raining, when it’s, you know, overflowing,” Tania Ruiz-Barreto, resident of Inverness Village 4, told ABC Action News.
Frustrated residents have filed legal cases against the company.
How to protect yourself while home buying
As these issues frustrate current residents, the situation serves as a warning for prospective homebuyers.
When exploring your home purchase options, look beyond the features of the home to take a closer look at what’s happening beyond your property line. Consider the infrastructure of the community. If you don’t want to drive through unpaved roads to reach your door, then consider looking elsewhere if a potential home doesn’t have the neighborhood amenities you have in mind.
In addition to the neighborhood, consider other factors that will impact your homeownership costs, like the insurance market. In disaster-prone areas, like Florida, home insurance costs are soaring. This could make owning a home there more expensive.
Plus, living in a disaster-prone area can be a stressful experience. Explore all of your options before putting down roots in a home that is likely to face impacts from hurricanes, wildfires, flooding, or all of the above.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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