Nancy Sarnoff chronicles the decline of Houston homebuilder David Powers Homes:
David Powers Homes has moved out of its offices on Westheimer and the Beltway and is now operating out of a model home in Lakes of Bella Terra, a subdivision in Richmond.
The company’s staff — 120 people at its peak — has dwindled to just four or five.
The high-end builder is now trying to finish the 36 homes it has in various stages of construction. . . .
Given the company’s higher home prices, about 50 percent of its customers financed their purchases with two loans to keep from paying higher interest rates on jumbo loans.
Those are loans that exceed $417,000.
Many of those second mortgages, Powers said, were subprime.
Image: David Powers Homes