Hearthstone Homes tells Channel 6 News it plans to sell the company to new owners.

Just this week, a bank filed a multi-million dollar law suit against the home building company. In the nearly 300-page suit that was filed on Wednesday by Wells Fargo Bank in Douglas County District Court, Wells Fargo states Hearthstone Homes failed to pay on a $17.5 million loan.

Now, Wells Fargo must go to the courts to appoint an independent, third party receiver to secure the bank-financed 46 homes and properties.

"The construction started moving much slower at some point and now I guess I really haven't seen much construction going on at all for a while now," said Jason Heida, a Hearthstone homeowner. “There is still a couple of construction trucks sitting over there, but I think they have been pretty much just been sitting there."

From Heida's front window, he has a clear view of his developing neighborhood near the Irvington exit off I-680. For now, construction on new Hearthstone Homes in the neighborhood has stopped. Where homes were planned to be built is part of the 46 properties Wells Fargo Bank is trying to secure in the lawsuit.

In a statement to Channel 6 News, a Wells Fargo spokesperson said, “The purpose of the suit is to guarantee homes in the process of being built will be finished, that buyers of those properties will able to move in and that contractors and sub-contractors will be paid for their work on the homes."

Hearthstone Homes vice president Scott Kinkaid tells Channel 6 News his company is working to resolve the lawsuit with Wells Fargo in hopes it can move on to selling the company in the near future.

"The owner, John Smith, has been working with and meeting with multiple investors to actually look at selling the company and is getting very close, that in and of itself will allow us to have some financial freedom to move forward and build homes in the future."

Kincaid said Friday the company is still operating “business as usual," stating the company closed on three new contracts earlier this week.

But for Hearthstone homeowners like Heida, hearing the company is looking to sell is concerning. "To see who might be purchasing the company and who I could possibly talk to if there are any more issues with the house and what that does for our warranties on the house, how that's going to be covered, I don't know."

Kinkaid said Hearthstone does not plan to file for bankruptcy.

A hearing to start the process of appointing a third party receiver of the 46 properties has been set for February 1st with Judge Thomas Otepka in Douglas County Court.