Prospect Homes of Richmond Inc., a large homebuilder that filed for bankruptcy protection last week, fell victim to the ailing housing industry and the liquidity crises facing the nation. The entire mortgage market froze last year, the president of the company said in papers filed with the U.S. Bankruptcy Court in Richmond. “After several years of growing revenues and record profits, the residential homebuilding industry took a severe downward turn in 2007, which continues through today,“ Joseph R. Audi said in a sworn statement.

Located: Henrico County
  President: Joseph R. Audi
  Operations: Started in 1983 by the Prospect family
  Sales: 114 residential units, nearly $36 million in sales in 2008
  Communities: 16 in Chesterfield, Hanover, Henrico, Louisa and Prince George counties and Farmville

Prospect Homes of Richmond Inc., one of the area’s largest builders, has filed for bankruptcy protection. “This is a reflection of the market,“ said Roy M. Terry Jr. of DurretteBradshaw law firm in Richmond, which is representing the Henrico County-based home builder. Sales of newly built homes are just beginning to inch up after hitting new lows in January, according to the National Association of Home Builders.