Erickson Retirement CommunitiesNov 2009 - Have you seen that Erickson Retirement Communities has filed for federal bankruptcy-law protection with more than $1 billion in debt? Erickson Retirement Communities have been around for over 25 years. Erickson has 23,000 residents in communities around the U.S. It has more than 12,000 workers in 11 states. That's a lot of senior housing! Erickson's president said the bankruptcy filing will not mean any changes for residents or jeopardize their refundable deposits. Most residents, like the general public, are unaware of the financial troubles. So do we trust him? Only time will tell.. Erickson's real estate has been hurt by the recession. They believe seniors aren't moving to retirement communities right now... makes sense to me as they likely can't sell their homes (or get what they thought they could in the real estate market).But -- like so many other companies, they likely overextended themselves.. yikes! Seniors in Erickson communities would pay their refundable entrance fees ($150,000 - $400,000) by selling their homes.When the housing market died, home values reduced drastically, and they choose to stay put, at home.. for now. Maybe that was best in the end... only time will tell. If you have any comments on Erickson Retirement Communities.. please share your two cents below. Thanks~ Wendy Where Do YOU Live?
Please contribute your two cents to this topic: (house, condo, apartment, low income) Tell us about your retirement lifestyle and where you live to help other retirees figure out which direction to move in! Thanks!
|
