Buyers of properties in Levitt & Sons' retirement communities that dot the Southeast face years of waiting for homes to be finished, if ever, and possible losses of thousands of dollars in deposits for homes that may never be built. Levitt & Sons filed for bankruptcy in November, listing assets of less than $1 million and debts of more than $100 million. People who have contracts on homes waiting to be built may lose their deposits completely.

Today's New York Times tells the story of some New Yorkers who bought one of Levitts & Sons' Seasons properties in South Carolina. The Seasons development has less than one quarter of the homes built and 90 buyers have $3.48 million in deposits on homes in various stages of completion according to the Times.

The lucky few with homes near completion may end up with completed homes, but only if the banks decide to hire contractors and finish them. Wachovia Corp. (NYSE: WB), the primary lender on many of the properties under construction, has promised to provide $10 million to finish at least 80 homes in Georgia, Florida and South Carolina, according to the Times story.

But are the people who will get their homes truly lucky? They'll be stuck with homes in partially finished communities with amenities that may never be finished. They must wait until another builder steps up to the plate, buys the land and decides to build if they ever hope to see unbuilt amenities. They may have bought into the active adult lifestyle and find that the only builder willing to take over the property doesn't want to cater to that age group. Promised amenities such as recreations centers, lawn care and pools may not be part of the new builder's plans. They also will probably not have warranty service and will likely have to pay out of pocket for any problems after purchase.

Even worse for folks stuck with Levitt & Sons building contracts on homes that aren't started, the Levitt Corporation has asked to sever itself from the Levitt & Sons division. Only Levitt & Sons is insolvent. If successful, the deep pockets of the Levitt Corporation (NYSE: LEV) won't have to help the people stuck with the building contracts. They'll likely lose most, if not all, of their thousands of dollars in deposits. For many, this is $50,000 or more.

Can you do anything to protect yourself from being stuck with such a raw deal? Before signing a contract on a new home you should ask for one of two provisions that builders don't usually include in their contracts:

• Require that your earnest money be put in a third-party escrow account so your money will be there and you will be able to terminate the deal and get your money back. This provision varies by state, so talk with a real estate attorney before signing a contract to be sure the provision is worded properly to protect you in the case of bankruptcy. Builders who do allow this provision may require you to take a construction loan during the building process. Builders use the down payments to finance construction otherwise and that's why all the people with contracts on nearly built homes have no money to show for it.

• Add a "springing provision," which is a clause that allows the buyer to walk away if the builder files for bankruptcy. This clause may not be enforceable in some states, so be sure you work with a real estate attorney to be certain you've got protection from bankruptcy.

Most builders do not include either of these provisions in their contracts. If you want to buy a new home and the builder won't accept them, walk away from the deal. I'm sure many of the people now stuck with the Levitt contracts wish that they did.

Given the current state of the economy, more builders will file for bankruptcy. Levitt is the largest so far, but not the first. Elliott Building Group in Pennsylvania, Turner-Dunn Homes in Arizona, Kara Homes in New Jersey and Neumann Homes in Illinois all filed for bankruptcy in 2007. More will likely choose that route in 2008 as homes sit unsold and new sales are hard to find.

Lita Epstein has written more than 20 books including "The 250 Questions You Should Ask to Avoid Foreclosure" and the "Complete Idiot's Guide to Improving Your Credit Score."