Trend Homes: Dishonest Crooks (mortgage, credit, work)

[Jabs]

I had posted to the forum back in October regarding issues with my contract and Trend Homes.

As they have now filed for bankruptcy, I have lost $3000 (which doesn't sound like alot to most people, but considering I'm a single person, it's alot to me). The thing that makes me angriest is that a) they knew they were filing for bankruptcy when I signed the contract and b) the law is protecting them.

Reed and Sabrina Porter are crooks of the highest order. I hope they rot.

Do yourself a favor: never do business with these pathetic vermin. You will regret it for the rest of your life.

[Garson]

Why would you lose your $3000? They filed bankruptcy but are still in business and plan on future growth.

[Jabs]

I signed a contract in October because I only would build with them on a specific lot (corner lot with no facing neighbors). At the time (according to the testimony I heard at the court) they already knew they were filing for Chapter 11.

After I signed the contract and picked out options at the design center, they called me claiming a mistake had been made and the lot I was contracted with was no longer available. They tried to move me to another lot (specifically, ones they needed to complete to "finish a row"). I declined to move.

A week later, they called and said "good news! you're getting your original lot." By then it was already mid-November. They were WELL into the process of preparing to file (which was official on January 31).

The house was supposed to be ready in April. In December, they claimed it would now be November. Now, there's no reliable date (as they have to close on at least 6 lots in my row before they can even start on mine). I'm assuming it wouldn't be ready until mid to late 2009.

I wanted to cancel the contract because 1) the house won't be ready for another year and 2) there is no way the house is now worth what I contracted for (and no way a mortgage company would lend the amount needed as the value of the house is much lower).

My money, contrary to previous belief, is NOT apparently in escrow. They added a nice little addendum (which I did not completely understand, to my chagrin) to their contract in October basically stating that the money would go into their general fund.

Basically, they used my earnest money and design center deposits to pay other creditors.

My options (as stated by them) are to: 1) wait for the house, which they'll complete when they feel like it, 2) cancel the contract and lose my money or 3) move to a different lot.

In the end, I lose out (on time, money or location) and they win.

[Greatday]

To be fair - most contracts for new homes provide for down payments/earnest monies to go into the general operating account of the builder.

This is not limited to this one builder.

And, it has been this way for years

[Jabs]

I guess what I find most dishonest is that while knowing they were not going to be delivering what I signed a contract for, they still took my money. When I contracted with them they KNEW that they were filing Chapter 11. They KNEW there was no way I'd get the house I thought I was buying.

That's what I find most dishonest.

[Greatday]

Originally Posted by Jabs

I guess what I find most dishonest is that while knowing they were not going to be delivering what I signed a contract for, they still took my money. When I contracted with them they KNEW that they were filing Chapter 11. They KNEW there was no way I'd get the house I thought I was buying.

That's what I find most dishonest.

I understand you concern, anger and dilemna

Keep in mind however that filing Chapter 11 does not mean the company is ceasing doing business.

[ivanabacowboy]

Let's just say I think your assertion that they knew they were filing bankruptcy in October is not factual. Yes they knew they were having problems in October-heck, virtually every builder in the valley was having and is still having problems. But I do not believe bankruptcy was a foregone conclusion at that point. And reorganization does not mean out of business-Trend is actually trying to reorganize (which is what Chapter 11 is for).

[Garson]

Trend is actually receiving a 65 million investment and will be very strong going forward. I am surprised nothing can be worked out for you.

[Want2Buy]

I am in the same situation. Trend kept giving me new completion dates. Now they won't even answer my email's. I am trying to find out if anyone knows the situation with the Chap 11 filing? Did they receive the 65 million as promised? I feel that they took my $3000 knowing the trouble they were in and didn't disclose that I could lose the money. I am not happy with them.

[SOON2BNSURPRISE]

Jabs, Why didn't your realtor help you out with this? That is what they are for. Chances are you are like me and went in to the biggest purchase of your life without assistance from a professional. Turns out that when you use a realtor the builder is required to pay them for the service and you end up ownig them nothing. At first I was thinking that I wished I had used a realtor. We are on our way to having a completed home soon. Our builder is Richmond American, although I also like Trend. My parents bought from them in 2003 and have a beautifull home. Sorry that your experience hasn't been as nice. I can imagine the bad taste that you are living with going through this situation. At the same time as you state the market is down now and many homes that are in forclosere are looking good as options to purchase instead of the new home route. Many of the homes the banks want to get rid of are very inexspensive compared to new built homes. Have you considered that route? I know that you will be out the $3,000. but chances are the forclosere home may be cheaper than what Trend is selling your home for. Another thing is that many of the builders will lower the price to meet the market value. I know that our builder did that for us and we ended up with a new contract at the new lower price. Kind of hoping that happens again soon.