Dozens of Florida homebuyers—many of them retirees who had invested their life savings—are now stuck with unfinished homes after Citrus County-based Van Der Valk Construction filed for Chapter 11 bankruptcy at the end of April.

The family-owned company, once part of Florida’s post-pandemic construction boom, left behind what buyers are now calling empty shells and broken promises. The bankruptcy filing revealed over $1 million in liabilities and under $100,000 in assets, impacting at least 58 homeowners who had expected to move into completed properties.

“It’s a living nightmare,” said Frank Sherrill, a retiree who contracted Van Der Valk Construction in September 2022 to build his dream home in Inverness Village 4. The property, intended to be his peaceful retreat, is now a partially constructed structure with no flooring, incomplete framing, and unfinished interiors.

A State Once Seen as a Retirement Paradise

Florida has long topped the list of dream retirement destinations, attracting nearly 20% of relocating retirees in 2024 alone, according to the AARP. But that dream is increasingly under threat.

A combination of climate risk, rising insurance premiums, escalating HOA fees, and an unpredictable housing market correction has made the Sunshine State a far riskier bet for those on fixed incomes. The collapse of Van Der Valk Construction adds another layer of uncertainty for retirees trying to settle down in what was once considered paradise.

“I need flooring. I need all the baseboards put in. All the framing for the doors,” Sherrill explained to ABC Action News. Despite already having paid nearly $200,000 for the property, he still technically owes $18,500—money he says is impossible to come up with given the circumstances.

A Personal and Financial Crisis

For Dyandria Darel, another homeowner impacted by the bankruptcy, the fallout has been equally devastating.

“It’s not only a retirement home, it was virtually my entire life savings,” she told ABC Action News. Darel had planned to relocate from New York to her new Florida home, but those plans are now indefinitely stalled.

“I put the money down on this house in 2022. It’s now 2025,” she said. Instead of enjoying her golden years in the sun, Darel is left facing legal and financial limbo.

Van Der Valk Construction had been actively building in several communities, including the Inverness Village 4 development, before abruptly halting operations with its bankruptcy filing on April 30. The company’s future now rests with the courts.

What Comes Next?

Under Chapter 11 bankruptcy law, Van Der Valk Construction is allowed to continue operations temporarily while it puts together a reorganization plan, which must be submitted to the bankruptcy court by July 29, 2025. That plan will also need to gain the approval of the majority of its creditors.

Until then, construction is frozen, and homeowners are left with mounting expenses, emotional strain, and no clear timeline for resolution.

“I cry a little bit,” Sherrill admitted. “Because it’s been hard.”

A Broader Wake-Up Call

The sudden collapse of Van Der Valk Construction is a cautionary tale in a state already grappling with affordability issues and the increasing difficulty of regulating residential builders. It also underscores how financially vulnerable retirees can be when life savings are tied up in risky developments.

As Florida’s housing landscape shifts under economic and environmental pressures, those looking to retire there are now being urged to do so with eyes wide open and financial safeguards in place.

Originally reported by Newsweek.