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Justin
My head implode


Joined: 17 May 2006
Posts: 493
Location: Atlanta

Concordia Homes
PostPosted: Wed Oct 15, 2008 9:58 am Reply with quoteBack to top

We got this in our inbox -- what almost appears to be a quote from a news article (though no link was attributed to it):

Quote:
On Tuesday of this past week, Concordia Homes of Nevada and Arizona, the owner Gidget Graham made the announcement to the employees that after 14 years in business in Nevada they were closing this past Friday the 9th.

All employees were told they had until the end of the day on Friday to clean out their desks as the company would no longer operate after Friday because of the failure to get loans to complete homes, pay subs and employees.

Concordia Homes of Nevada only two years ago had closed on over 300 homes and at one point had more than 60 employees.

You can call any of the companies communities and notice no-one picks up. The company had 6 active subdivisions in Nevada and 2 in Arizona.

www.concordiahomes.com


Anyone know anything more about Concordia? We were specifically trying to determine if the "300 homes" comment was a figure for the life of the business or one year.

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Justin @ Justin Owings dot Com @ The Mortgage Lender Implode-O-Meter
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SlickJulie
Flash in the pan


Joined: 01 Feb 2008
Posts: 59

Re: Discussion on Concordia Homes
PostPosted: Thu Oct 16, 2008 1:46 am Reply with quoteBack to top

http://www.lvrj.com/news/break.....52229.html

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Justin
My head implode


Joined: 17 May 2006
Posts: 493
Location: Atlanta

Re: Discussion on Concordia Homes
PostPosted: Thu Oct 16, 2008 5:30 pm Reply with quoteBack to top

Interesting write-up ... so not a bankruptcy and only closing sales/stopping building pre-sales ... is this an implosion? Hmm ... I'm leaning to "yes" in that they seem to be halting ongoing operations voluntarily but for the forseeable future.

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jbwilkins
Dud?


Joined: 28 Feb 2008
Posts: 7
Location: Las Vegas

Re: Discussion on Concordia Homes
PostPosted: Thu Oct 16, 2008 10:20 pm Reply with quoteBack to top

300 is their approxmate yearly volume......I don't know if that is for just Nv or both Az and NV........they were a 'niche' builder and were recently the first builder in the nation to introduce a "GE Ecomagination" subdivision........
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Aristotle
Nitroglycerin


Joined: 05 Dec 2007
Posts: 594
Location: On a sand dune, sipping a cold soda

Did the Construction Lender Breach Its Contract?
PostPosted: Thu Oct 16, 2008 11:23 pm Reply with quoteBack to top

It's no secret that I am actively looking for stories about banks and other construction financing sources (e.g. Lehman Brothers) intentionally breaching their contractual obligations to fund construction costs when developer/borrowers were not at fault.

The information received by the Implode-O-Meter, quoted by Justin above, makes it seem as if the construction lender(s) on Concordia's projects breached their contracts to fund construction draws as the projects progressed.

The Las Vegas Review Journal story does not quote the owner of the company, but instead an industry consultant who spins the story a different way, that buyers could not get purchase money financing.

In the case of small homebuilders getting construction money from powerful local banks, when construction lenders breach contracts the homebuilders are very often afraid to say so publicly, for fear of never getting another construction loan again. That is really sad for both the builder and its employees.

I hate to bore all of you by talking about the S&L crisis, but back in 1986 there was very convincing evidence that the largest savings and loan in the world intentionally breached its obligation to fund construction draws under many construction loan agreements it signed. I know about that because I spent several years cleaning up the messes those intentional breaches created.

My son and I even went on a walking tour of a project on the Galveston sea wall, left half built and open to the elements, because of an "order from above" to stop making construction disbursements.

I saw a similar intentional breach of the contractual obligation to fund construction draws when the FSLIC issued a stop lending order to a small local savings and loan. It seemed insane to me, to leave a half built project exposed to the elements and to vandalism, but that is what the business decision makers decided to do.

As a taxpayer, I am profoundly disgusted by such short sighted decision making.

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Aristotle

As Yogi Berra said "It's like deja vu all over again."
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autopost
Schumpeter Reincarnate


Joined: 24 May 2008
Posts: 217372

Re: Discussion on Concordia Homes
PostPosted: Sat Oct 18, 2008 4:10 am Reply with quoteBack to top

http://builder-implode.com/imp.....10-09.html
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davidandsooze
Dud?


Joined: 01 Jun 2009
Posts: 1

Concordia Homes
PostPosted: Mon Jun 01, 2009 2:00 am Reply with quoteBack to top

I'm new at this, and just found this site. We bought one of the Concordia models in Feb 2008. They signed a one year lease the sales contract obligated Concordia to return the home to a "production" house when they turned it over to us. They defaulted on the lease at the end of September 2008 and didn't make the next 5 payments. They also advised us that they didn't have the money to complete any of the renovations to convert the house from a model. When we took possession, we had no water heater, no garage doors (ours was the sales office and had two sets of french doors), no interior doors and a garage full of interior walls for offices. We have spent thousands of dollars to convert the home to a liveable condition. Additionally, they were supposed to convert the iron fencing surrounding the property to a vinyl fence to conform with the rest of the neighborhood. My question is has anyone heard anything about their financial status? We are told by the President, Gidget Graham, that they are still viable, not in bankruptcy and she has asked us to submit bills for payment when they are able to pay them, which we have. To date, there has been no reimbursement, although she continues to tell us that we will be the first to get dollars once she can get a line of credit. I heard a rumor that Concordia filed for bankruptcy in Arizona. Anyone????

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houston
Nitroglycerin


Joined: 02 Dec 2008
Posts: 661
Location: Houston, Texas

Re: Discussion on Concordia Homes
PostPosted: Mon Jun 01, 2009 4:53 pm Reply with quoteBack to top

I would say that Concordia is in pretty bad shape.
Quote:
Our main office remains open and is still managing customer service operations as normal. Our intention is to reopen our sales centers when market conditions improve.


They have closed all operations other than customer service but how long can that continue. If they are unable to assist you with this rather glarring need, their bank account must already be in a pinch.

I am guessing that you are converting the former model to sell it and that you are in the LV market. This is not a good time to "flip" but you have to do what you have to do. Good luck.

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