Tousa sees "significant" asset impairment charges

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WASHINGTON, Oct 24 (Reuters) - Home builder Tousa Inc TOA.N said deteriorating market conditions means it may have "significant" asset impairment charges in the third quarter of 2007, the company said in a regulatory filing.

Tousa, which withdrew its outlook for 2007 and 2008 and said it hired an adviser to review its capital structure earlier in October, said the charges would be due to weaker than expected net sales orders and declining prices.

The builder also said it would exercise the right to abandon a number of home-sight option contracts in response to deteriorating market conditions in the third quarter.

"As a result, the company anticipates that it will incur significant deposit write-offs and abandonment charges in the third quarter of 2007," Tousa said in a filing with the U.S. Securities and Exchange Commission.

Earlier in October, Tousa said it retained financial advisory firm Lazard Freres & Co to review its capital structure and assist it in an asset management strategy.

The builder cited deteriorating housing market conditions and challenges in the credit mortgage markets when it withdrew its outlook for 2007 and next year. Fading consumer confidence, swelling inventories and weakening prices also were factors.

Tousa operates in Florida, the Mid-Atlantic states, Texas and the West.

(Reporting by Julie Vorman and David Bailey)

((Editing by Andre Grenon; Reuters Messaging: david.bailey.reuters.com@reuters.net; e-mail: david.bailey@reuters.com +1 312-408-8135)) Keywords: TOUSA SEC/

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