At the time he was elected chairman, Mr. Icahn said: “Despite the rough road ahead, I believe in the long-term value of the company and view the WCI platform as a unique vehicle to take advantage of the current market disarray.”

Image One of WCIs developments is Fosters Run, in McLean, Va. Credit... Jay Premack/Bloomberg News

The luxury builder, whose business is concentrated in Florida, one of the states hardest hit by the housing downturn, defaulted on its bank debt on July 29 when its liquidity levels fell below the threshold required by its lenders.

“The banks have had enough, and understandably so,” said Vicki Bryan, an analyst with Gimme Credit, a bond research firm.

WCI has $2.18 billion in assets and $1.92 billion in debts, according to its bankruptcy petition.

Its chief executive, Jerry Starkey, will leave the company effective immediately after agreeing with WCI on a “mutually satisfactory severance package” and will be available for consultation, the company said in a statement.

The former chief operating officer, David L. Fry, was named interim president and chief executive.

Beazer Homes USA is the builder most likely to declare bankruptcy next, Ms. Bryan said. When Beazer reports its third-quarter earnings on Friday, the company will probably reveal such significant write-downs on land that is losing value that it might trip the covenants its banks have set to determine its minimum tangible net worth, she said.