Unbeknownst to many homeowners who bought new homes by Trend Homes Inc in the past year, their home warranties are no longer being honored by the builder. If a homeowner bought their home in the last year prior to the bankruptcy of Trend Homes Inc., they are encountering that they have no builder warranty, despite their very grounded belief that “Trend Homes” is still in business here in the Valley, and building homes.
I write this as a past client came to me very recently for help as they found themselves in the position of needing warranty work performed on their Chandler home and finding that ‘Trend Homes” is not willing to provide it.
The new Trend Homes or more legally known as “T2 Homes, LLC” was formed as part of a private equity investment injection by Najafi Companies when Trend Homes Inc. filed for Chapter 11 bankruptcy protection in the beginning of the year. T2 Homes, LLC was essentially able to take on Trend Homes Inc’s assets at more accurate market values and leave behind liabilities such as its obligations to existing homeowners who had purchased homes from Trend Homes Inc. in the prior year.
Indeed, the following was excerpted from an interview with AZCentral.com on October 10th:
“We now have new credit that allows the company a fresh start to go ahead and continue to do business, and we can offer homes at today’s market price. We’re no longer hanging around with a bunch of overpriced assets. Our new home prices are competitive with foreclosures and short sales, and we’re ready to go. Trend’s six communities completed construction on all the unfinished homes this summer. We’re eager to get some new homes sold in those communities,” says Reed Porter.”
In a sense, the story is like the dying Phoenix that gets burned up only to arise more powerful from its ashes. Hold on to this thought!
If you read through the interview, there is no mention of previous Trend Homes Inc. customers’ warranties not being honored by the new company.
How Different is the new Trend Homes?
Is Trend Homes or “T2” as it likes to be called the same as the old? From a legal, corporate entity standpoint, the company is indeed a completely different company. However, the name “Trend Homes” is still the same. The employee base is largely the same. The website looks to be the same. The corporate history is the same. The home designs and community plans are the same. From a public perception standpoint of some of its past customers, it’s the same Trend Homes, only a more disappointing rendition that doesn’t meet its commitment to its recent customers.
If you take a look at the description of Trend Homes on their website, you will see that there is no mention of Trend Homes Inc. going out of business or that there had been any changing of the guard in this case. From the reading, a typical site visitor would have no inkling that the company was anything but successful in its entire history. Here’s an excerpt:
“Trend Homes is one of the few privately owned home building companies left in the Phoenix Metropolitan area. The company was originally founded in Salt Lake City in 1966, then known as Trendsetter Homes. In 1989, founders of the company moved the business to Phoenix, Arizona… Part of the success of Trend Homes, has been its commitment to superior design… ‘Our goal is to see our communities appreciate in value and for our homeowners to really take pride in where they live,’ says Reed Porter, CEO of Trend Homes.”
What are recent former customers of Trend Homes Inc being told by the new Trend Homes?
Personnel from Trend Homes are telling its past customers that they cannot do anything for them as they are a completely new legal entity and that the builder that built and warranted their home is now defunct, i.e. Trend Homes Inc.
The new Trend Homes or “T2” as it likes to be called is putting the onus on the subcontractors that performed much of the work. Representatives from Trend told me that homeowners can call the subcontractors, names of which the new Trend is happy to provide, to have them perform the warranty work. They are also told that if a vendor doesn’t perform the work, the homeowner should consider filing a complaint with the Arizona Registrar of Contractors against that subcontractor.
However, if a homeowner should file a complaint against the new Trend Homes, ‘they are wasting their time’ in doing so as the new legal entity is essentially legally removed from pursuit by the ROC for any claims. Now, the people at the new Trend Homes are personable enough and helpful in tone here. It’s just that the whole deal is like putting ‘lipstick on a pig’ (my first and last use ever) when in fact homeowners feel like they are talking to the same Trend Homes that sold them their homes and promised them their warranties.
Now, in defense of this recommendation by T2 employees I spoke with, some subcontractors are getting out to do the warranty work. However, the reality is is that some vendors may no longer be viable or reachable.
In the case of one such vendor, the Registrar of Contractors has suspended the subcontractor’s license and calls to the company go unanswered. So, if the contractor is not even viable any longer, then the homeowner is faced with few options. They can file a complaint anyway with the ROC and/or pursue the vendor through their bonding. However, the latter may incur additional legal costs to do so with no guarantee of the right result. This, of course, takes time out of the schedule for the homeowner to pursue.
In the end, the rise of the new Trend Homes or T2 Homes, LLC means that some customers get left in the ashes. Homeowners will likely have to foot the bill for repairs they were told would be well taken care of. The rise of the Phoenix is not without its collateral damage as affected homeowners are left holding the tab.
Where should this story lead?
T2 Homes, LLC needs to change direction here and honor the earlier commitments of Trend Homes Inc. and do the warranty work on the homes that fall into the period of time being discussed here. Perhaps T2 Homes, LLC or Najafi Companies will step in to do the right thing here and make inroads to do right by Trend Homes Inc.’s previous customers.
As I write this, I am reminded of a great book out there. In the internet age, a customer who has a good experience will tell 3 people, a customer who has a bad experience will tell 3,000.
Let’s see if we can set something special in motion and get T2 Homes Inc. to do right by my former clients and a great story gets told to 3,000.
Bloggers of the world, unite!
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Dave - thank you for the excellent post. Trend built a very nice home in a distinctive community that we fell in love with leading to a purchase. A year later, we just want to see Trend follow through on their warranty and stand behind being a distinctive builder in Phoenix. It would be a shame to see larger tract builders gain momentum in these tough times over a quality local builder due to issues such as not standing behind their warranty. Thanks
Brandon
I agree on Trend as a distinctive and innovative builder here in the Valley. Out of all the builders out there, Trend offers the most creative designs of any builder at lower price point than most. There is a lot of thought and design put into the floorplans they offer from Cooley Station to Sienna. I especially like Sienna as you know the community is unlike anything around it from the moment you drive in. The architectural styles and curb appeal of the homes are impressive. The homes themselves are very well complimented with some of the most impressive kitchen designs that you see. I always enjoy showing Trend product for these reasons. So, it’s disappointing that a pool of customers were seemingly left behind with the transition from Trend Homes Inc. to the new T2 Homes or Trend Homes. We are really talking about purchasers from the January 2007 to March 2008 timeframe here. I can imagine there is some cost here but it would be great to see Trend step up and do right by a former Trend Homes Inc customer.
Thank you for your blog entry. I am one of those poor saps who is left with repairs that were either not made or half fixed by Trend Homes. Their voicemail for their so-called Warranty department changed from last week to now saying that they’re closed until further notice and to hire a contractor to do the repairs ourselves… oh yeah, and “sorry for the inconvenience”. I just have a sick feeling in my gut that it’s actually legal to absolve yourself from your contracts, wipe your hands clean and go on your merry way with a fresh start. Unless Trend/T2, whatever, decides to do the “right thing” and be an honorable company, I will be sure to inform everyone I know and don’t know about this snakey company. I’m also friends with several of their ex-employees and none of them have anything positive to share. Trend has been quite successful in taking advantage of everyone in their path.
I am one of thos who is left with half finished Warranty work. The stucco sub contractor repaired some cracks, but was left unpainted. Trend homes warranty department said I should hire a painter to finish the paintng. I also have several warranty repair items un touched. It is very very sad!!!
I moved into my Trend Home Sept 1, 2007. It was a “challenge” from the start. I caught the sales rep blatantly lying to me about the HOA fees. I should have run then. I have had floods and power outtages among other disasters. When I would call for warranty service I would get so muh resistance you’d think I was asking them to reconstruct the home. Now with the economy in shambles, having lost my job I struggle (to say the least) to pay the mortgage. Maybe I should call the mortgage company and tell them I’ve left the (broken! garage) door open for them.
I too have a trend home and was just notified by “Trend” that I can pay for my termite treatment myself. Thats right, my two year old home has termites, as did 3 of my neighbors. They sent me a copy of the chapter 11 notice and a couple of companies that will offer me a “discount”. thanks for nothing TREND.