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 companyâ€™s staff â€” 120 people at its peak â€” 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 companyâ€™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