housebuyers beware

Housebuyers should note the financial standing of a housing developer. You dont want to lose your money and your house, do you? Normally a housing developer has to inform through advertisement whether has land is free (without borrowings from banks). In this way the house buyers can get a good deal. My view it is the best deal in buying a property. If a developer mortgages his land, the bank(s) has the absolute right to dispose it though part of land maybe sold to the housebuyers which hasnt completed. The housebuyers will be the last to get compensation when the developer is bankrupt. In this scenario, the housebuyers can kiss goodbye to their properties on the land and their cash put in. It is in this case there will be nothing left after the bank(s) take its share followed by other secured creditors. Whatever will happen then, the housebuyers will get the peanuts. Sad but it is true.