KH Financial - Retail

Update - 2008-04-24: In an announcement on their web site April 23,

"...announced that as part of its ongoing strategy to reposition the Company in light of current challenges faced by the homebuilding industry, Kimball Hill, Inc. and certain of its subsidiaries have filed voluntary Chapter 11 petitions for reorganization in the United States Bankruptcy Court in the Northern District of Illinois. The Company's financial service businesses are excluded from the filing."

Original Listing - 2008-02-21: In an article entitled "Kimball Hill Considers Bankruptcy Filing," Big Builder News reports:

"Kimball Hill Homes, the Rolling Meadows, Illinois builder, on Feb. 14 disclosed nearly 30 covenant violations in a 10-Q filing with the Securities and Exchange Commission and said it was considering a Chapter 11 bankruptcy filing."

According to Big Builder News, the company announced on February 18, 2008 to form a "joint venture to originate, process and fund mortgage loans" with Wells Fargo, which means KH Financial is no more... gone. We contacted the Las Vegas office for clarification of the deal, but were offered "no comment" and "not at liberty to talk about it." Hopefully a spokesperson will contact us with a statement.

We also spoke to one of these 'new affiliates' and he denied that the new company, to be named KH Mortgage had any connection to KH Financial, the potentially bankrupt builder. As you can clearly see here and here, the new web sites are already online, and the phone and fax numbers for the Houston office of each company are the same.

KH Financial shows 10 offices on it's web site, including one Countrywide connection. Most phone numbers were disconnects or machines, but the main Chicago number does say the KH Financial has "ceased operations" and refers the caller to the new Wells Fargo company.

Our only source at this time for sales volume figures puts KH Financial at over $50 million per month in 2005. If you have more information you would like to share, email us here.