Woodside Homes, LLC. Customer Q&A

1. I heard you are bankrupt. Are you going out of business?
No, Woodside is not going out of business. We fully intend to continue to operate and to meet customer needs and expectations far into the future. Chapter 11 is a tool that enables us to continue uninterrupted operations while the Company restructures its debt. Like the vast majority of companies that go through Chapter 11, we fully expect to emerge as a stronger, more vibrant organization with long-term financial strength and stability.

2. What’s going to happen while you are in Chapter 11?
It is business as usual. We have been granted Court authority to continue all of our customer programs. We continue to build great homes and we fully expect to honor all ordinary course obligations to customers. Customer deposits are safe and will be credited to your purchases, homes will be sold free and clear of liens, and we intend to honor home warranties in the ordinary course of business.

3. What will happen to my pre-approved mortgage from Hillsborough?
You should experience no effect whatsoever. Woodside’s affiliate providing financial services, Hillsborough Lending, is not included in the bankruptcy filing. Hillsborough has its own separate revenue sources and will not be impacted by Woodside’s bankruptcy cases. Your closing will take place as scheduled.

4. I like your homes for the quality and attention to detail. Will the reorganization effect the quality of my home?
Woodside Homes has been around for more than 30 years, and we intend to be around for at least 30 more. The Company was built on the foundation of combining a strong work ethic, a superior product, and the highest level of customer satisfaction. Cutting corners would be counterproductive to what we are trying to achieve; which is reorganizing as an even stronger and even more competitive Company, providing the highest quality product in the market today.

5. Will I still have the same great service and warranty that you offfered before?
Of course! In fact, we have made our warranty program even better as part of the reorganization. While you still receive the warranty and service we have offered in the past, homebuyers under contract and new homebuyers will also receive a 10-year structural limited warranty that is backed by Bonded Builders Warranty Group, a nationally recognized independent warranty company (the “Bonded Builders Limited Warranty”). Your sales agent can provide more details.

6. Are there other successful companies which have done a similar type of reorganization?
Absolutely. Companies such as Macy's, K-Mart, 7-Eleven (The Southland Corp), Delta Airlines, Ryan Homes (NVR, Inc.), and others have all done the same type of restructuring with their lenders and often without the customers noticing anything. We plan to have our reorganization be just as smooth for our homebuyers..

7. I am still uncomfortable with the current situation and I would like to cancel my contract and get a refund.
I am very sorry that you feel so uncomfortable. We are operating in the normal course of business and expect your home to be completed on schedule. Requests for refunds of customer deposits will be treated according to the terms of your existing sales contract, consistent with our normal business practices.

8. What about commitments and incentives you offered before the filing?
We stand behind our commitments. In fact, we have been granted Court authority to continue our customer programs in the ordinary course of business.

9. How about your contractors? Are they sticking with you?
Yes. In fact, vendors and suppliers are assured payment for goods and services provided on a going forward basis. Like our customers, they are a vital part of Woodside’s business and we intend to maintain good relationships with them.

10. Will I receive all the options, upgrades, and selections I made or will you make substitutions because you had to switch suppliers?
It is our intention to honor every one of your specific requests, as we know how important these critical details are to you. If any changes are necessary, you will be notified beforehand so that appropriate, alternative choices can be made.

11. Will construction of my home be delayed?
We anticipate that your home will be completed on schedule as previously discussed. We do not foresee any delays due to the restructuring.

12. What happens if for some reason you don’t finish building my house?
That will not be an issue. We have taken the steps to make sure we are able to finish all homes under construction.

13. How safe is my deposit?
Your deposit is safe. We expect to continue to maintain customer deposits under existing practices and refund customer deposits if warranted pursuant to the terms of the sales contract, consistent with our normal business practices.

14. Are you going to be raising your prices now that you have filed for Chapter 11?
Our prices have always been market-driven and they will remain that way in order for us to remain competitive.

15. What assurances do I have that amenities, roads (including final paving), utilities, and other common area improvements will be completed in the manner described at the time of purchase of my home?
We intend to stand by our commitments to build any facilities or infrastructure that were a vital part of your decision to purchase your home. Additionally, in most instances, we have surety bonds in place that ensure adequate funding is available to complete infrastructure improvements.

16. I understand you still control the homeowners’ association and are funding a significant portion of its expenses. Will you continue to do so in bankruptcy?
Yes, Woodside intends to continue its normal practice of covering homeowner association dues for unsold homes in communities. As we have been granted Court authority to continue with ordinary course customer programs, we plan to continue to offer the same programs and high level of customer service we have always provided to our customers.

17. I Intend to have an independent inspection of the home by a third party engineer prior to accepting delivery because of your bankruptcy filing. Will you pay for this inspection?
We intend to stand behind customer commitments and incentives in the ordinary course of business. Requests for reimbursements will be treated according to the terms of your existing sales contract, consistent with our normal business practices.

18. My contract allows you to increase my purchase price if you experience increased costs. Do you intend to invoke this provision of the contract, and if you do, will you distinguish between increases due to general conditions and increases due to your bankruptcy?
We intend to comply with our customer contracts as we always have and have no intention of passing bankruptcy related costs to our customers. We expect our suppliers to continue to provide us with goods and services on favorable market terms because they have the added protection of assured payment while we are operating in Chapter 11.

19. I waived escrow on my deposit. Am I assured it will be applied against my purchase price even though it wasn’t escrowed?
Your deposit is safe. We expect to continue to maintain customer deposits under existing practices and monies held will be applied against the purchased price.

20. My salesperson promised me certain items/amenities as part of the closing. Will this be honored?
It is our intention to honor every one of your approved incentives, as we know how important these are to you.

21. I received some legal documents in the mail. What are they and what should I do with them?
Under the U.S. Bankruptcy Code, Woodside is required to provide “notice” of the Chapter 11 to potential creditors, or those who have engaged in business with the company. As such, you have likely received what is called the “Notice of Commencement.” This does not require any action on your part as it was sent for informational purposes. Moreover, throughout the process you will be receiving additional notices including the meeting of creditors or “341 Notice” and the “Notice of Bar Date” which will have a claim form attached along with the deadline on which claims must be received—the Bar Date.