Hovnanian Enterprises Inc.

Hovnanian Enterprises wrote off 1,345 houses in Lee County and a class action lawsuit has since been filed against the company alleging fraud and misrepresentation in the failure of those houses to go through. Buyers purchased the houses with construction loans that paid for the lot, then Hovnanian was meant to take draws from the loan to pay for the house's construction. Buyers were originally supposed to convert the construction loan to a mortgage on completion of the house but many were unwilling or unable to do that as prices plunged and lenders tightened credit policies after the market started to slide in early 2006.

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