Eastern eight community development corp

Eastern eight community development corp

Posted in the Johnson City Forum

Since: Nov 11

Location hidden

#1 Nov 30, 2011
I purchased a home built by eastern eight and am having major problems with quality & warranty issues. I have heard from many people that they have had ongoing quality issues with their E8 homes. I am interested in others' experiences and how they were able to get their issues resolved, if they were successful or not. You may comment here, or email me at [email protected] I understand confidentiality & the necessity of being discreet if you have pending litigation, & will respect that. Thank you!
Nobody

United States

#2 Dec 1, 2011
A person who has legimate complaint could contact the Tn Dept of commerce and insurance board of licensing and file a complaint. Check online.

Since: Nov 11

Location hidden

#3 Dec 2, 2011
Thanks, Nobody! I appreciate the direction! I've never had to deal with anything like this before, so I appreciate you giving me a place to start.
anonymous37

Johnson City, TN

#4 Jan 7, 2012
What kind of quality issues have you been having exactly? I've been looking into E8 housing for myself and have wondered how sturdy they are, since I noticed they mentioned they also build manufactured housing for Clayton Homes (trailers). I haven't really got to hear any personal experiences people have had with E8.
Scammed

United States

#5 Jun 9, 2012
I got a home from them, & I would say it is trailer-type quality. I also had to go get a lawyer, & will probably have to sue. I also had a lot of property damage to due a lengthy mold issue, & they promised me if I let them do the repairs (after 3 years), they would pay me for the property damage in full, now they are offering me a portion of that value, but won't give me my money until I sign a full release exempting them from any & all quality issues in the future. They haven't even fixed what they said they would yet. Basically they are holding my money hostage (which I could have had, had I filed under my own homeowners insurance, but E8 promised me they would take care of it), unless I sign this release, which also requires I don't tell anyone else about my horrible experience. They must expect issues with this house to continue, or I don't know why they would be withholding my money to get me to sign a full release so I have no recourse if there are any other major structural issues, I'm assuming they are expecting a class-action or something. I have heard of other people having problems as well.

If you deal with them, get everything in writing. They have no problem telling you one thing & doing another.
Hmm

Murfreesboro, TN

#6 Jun 9, 2012
I havent dealt with Eastern Eight but did some quick research when I saw this topic. Seems they are a non-profit organization that builds lower income housing. My big question is, why would any organization get involved in such a business if they're not for profit? Would understand if it was a church maybe or Habitat for Humanity or something like that. Seems something must be going on behind the scenes for someone to make money or the whole concept doesn't make sense.
Nobody

Garner, NC

#7 Jun 9, 2012
Hmm wrote:
I havent dealt with Eastern Eight but did some quick research when I saw this topic. Seems they are a non-profit organization that builds lower income housing. My big question is, why would any organization get involved in such a business if they're not for profit? Would understand if it was a church maybe or Habitat for Humanity or something like that. Seems something must be going on behind the scenes for someone to make money or the whole concept doesn't make sense.
Exactly.
my understanding

Kingsport, TN

#8 Jul 12, 2012
Don't quote me but I think they are funded by govt allowance like housing authority, section 8, etc. I sat in on a gathering they hosted once. They are allotted a certain amount the govt approves and have to spend it all or they lose their funding funding by a percentage the next year. I know for a fact they pay employees VERY WELL too! always loved knowing this when craftsmanship from companies isn't up to expectations...if you know what I mean.
Homein Elizabethton

Johnson City, TN

#9 May 18, 2013
I bought a home from Eastern Eight in July 2012 and I've not had any problems at all. There were some warranty issues that sprung up after a few months, but I got in contact with them and they fixed them all. It took a little while, because they were having problems with the contractor that built my home, but they fixed it.

In my opinion, my home is quality and they have worked with me in a professional manner.
Double Wide

Johnson City, TN

#10 May 18, 2013
Hmm wrote:
I havent dealt with Eastern Eight but did some quick research when I saw this topic. Seems they are a non-profit organization that builds lower income housing. My big question is, why would any organization get involved in such a business if they're not for profit? Would understand if it was a church maybe or Habitat for Humanity or something like that. Seems something must be going on behind the scenes for someone to make money or the whole concept doesn't make sense.
Bingo. With the plethora of mortgage money that use to abound, and the government mandate to lend to low income, not for profits formed. That they built substandard is no surprise.(They're not builders by trade.) They were able to give some political cronies and naive do-gooders some office jobs and threw up a few homes, and manage some already constructed apartments. Part of the plan was to create a local Acorn like network, subsidized by your tax dollars. If there was a quick or shady dollar to be made of course Clayton would get a cut.
Anonymous

Knoxville, TN

#11 Oct 23, 2013
]. E8 is totally legit. There are many non profit housing developers. Habitat is only one of many. Habitat doesn't want to have to follow HUD guidelines, so they don't apply for HUD funds. I worked in non profit housing development for many years and it can be a very rewarding career. From what I understand of E8, there were a couple of years that they struggled with a less than honest project development director as well as dishonest contractors. As with all construction industry, there are bad apples out there who can spoil the whole basket but the majority of E8's new construction is(or at least used to be) quality work. With better management and a new pool of honest contractors, they could easily once again be what they were four to five years ago.
Predators

Johnson City, TN

#12 Apr 24, 2014
My sister is one of the people they preyed on. Their trick is to build a home, have the buyer finance as much as they are eligible for and then offer "grant money" to make up the difference between what is financed and some inflated price they come up with. The trick is, what they plainly call grants are really leins they put against the homes, so any equity is going to go back to E8. My sisters house was financed at appraisal value, then E8 named a price about $18,000 more from their appraisal and said they'd make up the difference in "paper grant money". The grant money are leins on her now.

The director may think she can avoid responsibility by passing the buck, but karma is going to bite her so bad one day. Just because you turn a blind eye to something or pretend that you aren't responsible for something even though you take a huge paycheck for it, doesn't mean you aren't going to have to take responsibility at some point.
Rcdeskj

Nebo, NC

#13 Apr 24, 2014
Predators wrote:
My sister is one of the people they preyed on. Their trick is to build a home, have the buyer finance as much as they are eligible for and then offer "grant money" to make up the difference between what is financed and some inflated price they come up with. The trick is, what they plainly call grants are really leins they put against the homes, so any equity is going to go back to E8. My sisters house was financed at appraisal value, then E8 named a price about $18,000 more from their appraisal and said they'd make up the difference in "paper grant money". The grant money are leins on her now.
The director may think she can avoid responsibility by passing the buck, but karma is going to bite her so bad one day. Just because you turn a blind eye to something or pretend that you aren't responsible for something even though you take a huge paycheck for it, doesn't mean you aren't going to have to take responsibility at some point.
Yeah, the huge paycheck probably keeps it nonprofit. Karma needs to bite her, chew her up and defecate her out.
Homeowner

Johnson City, TN

#14 Jun 25, 2014
Predators wrote:
My sister is one of the people they preyed on. Their trick is to build a home, have the buyer finance as much as they are eligible for and then offer "grant money" to make up the difference between what is financed and some inflated price they come up with. The trick is, what they plainly call grants are really leins they put against the homes, so any equity is going to go back to E8. My sisters house was financed at appraisal value, then E8 named a price about $18,000 more from their appraisal and said they'd make up the difference in "paper grant money". The grant money are leins on her now.
The director may think she can avoid responsibility by passing the buck, but karma is going to bite her so bad one day. Just because you turn a blind eye to something or pretend that you aren't responsible for something even though you take a huge paycheck for it, doesn't mean you aren't going to have to take responsibility at some point.
This actually doesn't make any sense. How can someone get a big paycheck from a lien (correct spelling) that's tied up in a property? The lien would only get paid if the homeowner sold the property someday in the future, and only if it sold for enough that the lien could be paid. That's no exchange of funds, no fat income for anybody.

The truth is that the home was sold for appraisal price - but your sister couldn't afford it because her she wasn't approved for enough financing, based on her income and credit. Thus, Eastern Eight gives her a grant to make up the difference. In essence, they've given HER $18,000, and the lien is there so that she can't take advantage of them by selling it and pocketing that money. Of course, that grant only has a limited amount of time before the recapture expires - meaning that after so long there will be no lien, and she or her heirs can sell the property and keep the $18,000 if they can get that sell price.

That seems like a pretty good deal for her, if you ask me.
Predators

Johnson City, TN

#15 Jul 5, 2014
Homeowner wrote:
<quoted text>
This actually doesn't make any sense. How can someone get a big paycheck from a lien (correct spelling) that's tied up in a property? The lien would only get paid if the homeowner sold the property someday in the future, and only if it sold for enough that the lien could be paid. That's no exchange of funds, no fat income for anybody.
The truth is that the home was sold for appraisal price - but your sister couldn't afford it because her she wasn't approved for enough financing, based on her income and credit. Thus, Eastern Eight gives her a grant to make up the difference. In essence, they've given HER $18,000, and the lien is there so that she can't take advantage of them by selling it and pocketing that money. Of course, that grant only has a limited amount of time before the recapture expires - meaning that after so long there will be no lien, and she or her heirs can sell the property and keep the $18,000 if they can get that sell price.
That seems like a pretty good deal for her, if you ask me.
The home price with the lein was actually $18,000 more than appraisal value. She has to get 18,000 equity in it first to break even. When they sold her the home, she became under water that much.

It would be a good deal if it the price of the home was at least close to the value of the home or what she could resell it for, but the price was so inflated.

She should not have gone with E8s appraisal. They told her they were her agents & she thought they were working on her behalf. The independent appraisal she had later informed her the house was never worth that much.
Predators

Johnson City, TN

#16 Jul 5, 2014
Homeowner wrote:
<quoted text>
This actually doesn't make any sense. How can someone get a big paycheck from a lien (correct spelling) that's tied up in a property? The lien would only get paid if the homeowner sold the property someday in the future, and only if it sold for enough that the lien could be paid. That's no exchange of funds, no fat income for anybody.
The truth is that the home was sold for appraisal price - but your sister couldn't afford it because her she wasn't approved for enough financing, based on her income and credit. Thus, Eastern Eight gives her a grant to make up the difference. In essence, they've given HER $18,000, and the lien is there so that she can't take advantage of them by selling it and pocketing that money. Of course, that grant only has a limited amount of time before the recapture expires - meaning that after so long there will be no lien, and she or her heirs can sell the property and keep the $18,000 if they can get that sell price.
That seems like a pretty good deal for her, if you ask me.
I just called and asked her about this & she knew nothing about the liens expiring.(she wasn't given the terms of the "grant" beforehand.)

Is this a state law that liens expire, or that you don't have to pay them back if there is no profit from the home sale?

She wants to move but thinks she has to pay back the "grant" money upon sale, & she knows the home will only sell for close to what she has financed. There would be no profit available to pay back the "grant" from the sale & she doesn't have the money up front so thinks she can't sell.

You seem to be familiar with this process & any info you can provide would be appreciated. When she first found out about the liens she tried to get info from E8 but they would not respond to her. What she found in her after-sale paperwork has made her think these are not at all grants as they were called but actually loans that get paid back upon sale or after a certain period of time.

She said that at least one of the liens was not with E8, like they had transferred or sold it. Maybe that is how they get the cash faster from a lien? Can they sell them?

Since: Oct 14

Rogersville, TN

#17 Oct 22, 2014
There really needs to be a rating of ZERO because that is what they deserve. I realize others may have had a positive experience but not me. We have tried to go through this program twice and the employees always have different reasons why we don't qualify. We get different answers from different employees. I personally know families who have made more money as well as families that make a lot less and they have qualified through this program and got assistance. This program uses YOUR tax dollars to provide a lower interest rate loan or help with closing costs or down payment for first time home buyers. I am a tax paying citizen as well as a veteran who fought for this great country and I guess I'm more disappointed than anything else. Eastern Eight reeks of discrimination. I have contacted my congressman, the fair & equal housing opportunity and a few other places. They have been an absolute complete waste of my time and energy. I urge people to seek assistance elsewhere.
Brokenmotherof4

United States

#18 Jul 14, 2015
Hello I bought a home in September 2014 from Eastern Eight Community Development, it a remodeled home and they told me everything was great they just put new plumbing, roof shingles was a couple of years old, I asked about the roof and they told me it was is in great shape... I wasn't in the home a month and I had a waterfall coming down in my liver room and I had a pool in my floor.. I called and called and called and called left messages no one returned my phone calls and when they did it was 4 weeks later in the mean time I'll call the plumber and the plumber had to come and replace piping in my upstairs bathroom that they said was new. Then a few months later I had another waterfall in my living room and a pool in the floor again, I called and called and called yet again , While I was at work they sent someone out and they sprayed some rubber stuff on back side ofthe house o that roof and said it was fixed ,well when we got another rain I had another waterfall I called no answer of course so I called a roofer the roofer came out and expected the roof and found out that there's no plywood on my roof no where and that they put shingles on slats that was inches or feet apart that's why my shingles are coming off and I have a waterfall every time it rains. I've been having this problem for 10 months like I said I'm not lived in my house a year can anyone please help me...
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