More Seattle Foreclosed New Homes as Developer Miss Payments

The number of foreclosed new homes in Seattle has risen further after Conner Homes, one of the top homebuilders in Seattle, failed to pay Bank of America its $24.8 million development loan.

The foreclosed new homes are located in Conner’s Bentley housing development in Bothell.

Charlie Conner, owner and CEO of Conner Homes, said he tried to renegotiate the loan with lender Bank of America to extend the payment for a few more months but failed.

The bank foreclosed on 26 lots in the first phase of Bentley and on approximately 40 acres planned for future projects. It repossessed the properties by paying around $10.5 million to foreclosure auctioneers in June.

The foreclosure did not include 22 home lots where houses have already been constructed or are being built. About 13 homes are already occupied by buyers.

The Bentley development is not the only project lost by Conner Homes to foreclosure. Conner Homes’ 35-acre housing project in North Bend was also hit with a foreclosure notice last week. According to King County records, Conner has not made loan payments since December.

The financial situation of Conner Homes illustrates the difficulties currently faced by homebuilders during the recession. Across the country, homebuilders cannot pay their loans because they cannot sell their new homes. Instead, these new homes have been becoming foreclosed new homes at a fast pace.

Charlie Conner himself said that his situation is not unique. But he reiterated his determination to survive the recession and to continue his homebuilding business which was founded 50 years ago.

Bill Hurme, an executive of Team Builder JLS, said many housing developers and builders in the area have been renegotiating their loans and that several will fail to reach agreements. These failed negotiations will lead to more foreclosed new homes in the Seattle area.

Another major Seattle developer, Sound Built Homes, has already seen many of its properties in its Vila Real subdivision in Kent become foreclosed new homes.

Conner Homes has been a prominent member of the Seattle business community, having constructed over 5,000 houses in the Seattle area since 1959. Owner Charlie Conner has previously led the Master Builders Association of King and Snohomish Counties and has been chosen as Builder of the Year in the year 2000.

The homes being sold in the Bentley development were priced from $690,000 to $920,000.

According to Charlie Conner, he is currently negotiating with a group of investors to help him get back the foreclosed new homes.

By Cassiano Travareli