HOUSTON -- One of Houston's largest homebuilders is in financial trouble.

Royce Builders has laid off dozens of employees and stopped building new homes.

Royce customers, such as Craig Beecher, whose home is already completed, asked KPRC Local 2 investigative reporter Amy Davis what happens to their home warranties.

There is an old saying that warranties are only as good as the company backing them up.

Right now, the financial situation at Royce Homes is not good.

We couldn't get anyone at the Houston-based builder's offices to return our phone calls.

Beecher e-mailed that he was having the same problem when he tried calling to make a warranty claim.

The garbage piling up outside Royce Builders main office is one indication the company is cleaning house.

It's gone from 220 employees to about 60.

Royce has not yet filed for bankruptcy. If that happens, Royce's home warranties may not be worth the paper they're written on.

A Royce spokesman told us that Royce's warranties are provided by a third party, so even if the builder files bankruptcy, homeowners will be covered.

When no one returned messages Davis left at Royce's main office, she called Royce's president at home.

His son finally responded by e-mail, but he has not answered any questions about why no one is answering the phone so customers can make warranty claims.

All signs indicate that Royce is honoring warranties for now, but with far fewer employees it may take awhile for Royce to return calls and do the repair work.