Sec Form 4 Filing - WILLIAM HARWELL LYON 1987 TRUST @ WILLIAM LYON HOMES - 2006-07-24

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person WILLIAM HARWELL LYON 1987 TRUST 2. Issuer Name and Ticker or Trading Symbol WILLIAM LYON HOMES [ WLS] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director X __ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) C/O WILLIAM LYON HOMES, 4490 VON KARMAN AVENUE 3. Date of Earliest Transaction (MM/DD/YY) 07/24/2006 (Street) NEWPORT BEACH, CA92660 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 07/24/2006 P 461,987 D $ 109 2,211,246 D Common Stock 07/25/2006 J( 1 ) 245,177 ( 1 ) A $ 109 ( 1 ) 282 ( 2 ) D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Variable Prepaid Forward Contract ( 3 ) 07/24/2006 J( 3 ) 1 ( 3 ) ( 3 ) ( 3 ) Common Stock 117,000 ( 3 ) 0 ( 3 ) D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other WILLIAM HARWELL LYON 1987 TRUST C/O WILLIAM LYON HOMES 4490 VON KARMAN AVENUE NEWPORT BEACH, CA92660 X Signatures Richard M. Sherman, Jr., as Trustee of the William Harwell Lyon 1987 Trust 07/26/2006 Signature of Reporting Person Date

Explanation of Responses:

( 1 )On July 25, 2006, following contribution to WLH Acquisition Corp. ("Parent") of a total of 7,832,644 shares of Common Stock of the Issuer by the reporting person, General William Lyon and an additional trust in exchange for a proportionate interest in Parent, Parent was merged with and into the Issuer, with the Issuer surviving the merger. Each of share of common stock of Parent was converted into one share of common stock of the surviving corporation, and each share of common stock of the Issuer not held by the Parent was converted into a right to receive $109.00 in cash (or such other amount as may be determined pursuant to an appraisal proceeding to the extent the holder properly elects seek appraisal rights). Accordingly, pursuant to these transactions, the reporting person effectively acquired 28.2% of the remaining 869,423 shares of Issuer Common Stock stock that was not held by the reporting person or the aforementioned trusts prior to the merger. ( 2 )By virtue of the exchange ratio in the merger, the number of shares held represents 28.2% of the outstanding shares of the surviving corporation. ( 3 )As previously reported, on September 15, 2005, the reporting person entered into a variable prepaid forward contract with an unrelated third party (the "Buyer") relating to up to 58,000 shares of Common Stock. On July 24, 2006, the contract was terminated, and the reporting person paid $6,280,820 to the Buyer in settlement of the contract.

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* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

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