Comstock Homebuilding reaches foreclosure agreement with BB&T

By Caroline Salls

Pittsburgh, Sept. 2 - Comstock Homebuilding Cos., Inc. and some of its subsidiaries entered into a foreclosure agreement with Branch Banking and Trust Co. on $32.7 million of $144 million of Comstock's secured debt, according to a company news release.

Under the agreement, Comstock agreed to cooperate with BB&T in connection with the foreclosure on some of the company's real estate assets.

In exchange, BB&T has agreed to release Comstock from its obligations, with no post-foreclosure deficiency liability.

"As previously announced, we are working to restructure a significant portion of our debt to ensure our ability to survive what has turned out to be the worst cyclical market downturn in a generation," Comstock chairman and chief executive officer Christopher Clemente said in the release.

"We continue to focus on similar negotiations with certain other lenders and remain optimistic regarding the outcome of these negotiations."

The BB&T foreclosure agreement covers properties in Virginia and Atlanta, according to the release. Comstock will keep pre-sold lots in Atlanta that are not included in the foreclosure.

According to the release, BB&T was expected to complete the foreclosure process on select lots in the Atlanta market on Sept. 2. The lender will complete the foreclosure on all of the collateral securing Comstock's debt at the Barrington Park and Woodlands of Round Hill projects in Virginia by Sept. 30.

Comstock is a Reston, Va.-based production homebuilder.

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