The Gardens at Thyme Square is billed as a "Tuscan luxury" condominium projects, two- and three-bedroom units representing the newest homes in Cloverdale.
The few families that bought or rented the homes were pleased with the quality of construction and the well-appointed touches, including granite-slab countertops and energy-efficient windows and appliances.
But now, most of the 45-unit complex is about to go on the auction block, representing the latest builder to be caught in the squeeze of the housing downturn.
MLB Homes of Sebastopol, which built the "upscale" condominiums, sold only four units in a little more than a year. The company owes $11.5 million to its lender, Exchange Bank, which foreclosed on the property.
A trustee's sale is scheduled Dec. 30 on the steps of the Sonoma County administration building to the highest bidder, for cash.
For the half-dozen families that rent at the Gardens, some of whom moved in only a few weeks ago, it leaves doubt about whether they can stay. And they are angry they weren't told about the possibility of foreclosure, because MLB was put on notice in August that it was in default.
"They are continuing to run ads to rent these places. People are moving in and not notified," said Tina Reynoso, a mother of four. "It's unbelievable this company would rent to these people and knowing the whole time it could be short term."
On Dec. 10, just two weeks after moving in, Andrea Mrkvicka and her husband, Zach, got a letter confirming the property was going into foreclosure.
"It's sickening because we just moved in," she said. "It was deceitful."
Those who bought their units also are concerned about the pending sale and what it will mean for their property values, along with the upkeep of the common areas.
"It's really upsetting," said Cindy Jessen, who bought a two-bedroom unit for $399,000 in late 2007, one of the first units to sell. "We're pretty much in the dark about what's going to happen."
It was the first home purchase for Jessen, a high school special education aide, and her husband, who works as buyer for Calpine at The Geysers geothermal field.
She said she feels bad for the builders, who are "really nice" and went "above and beyond" in the quality of construction.
Officials at MLB Homes, as well as Granite Group, the company's sales division, did not return calls this week from The Press Democrat. An Exchange Bank spokeswoman referred questions back to MLB.
Exchange Bank, Sonoma County's oldest and largest bank, has lost money in three of the past four quarters, totaling $11 million so far this year. Much of the loss is blamed on construction loans the company made to developers just before the red-hot housing market cooled off.
As home prices -- and sales -- have plummeted, builders have dramatically slowed the pace of construction and fallen behind on their loan payments.
In a letter to the tenants at the Gardens at Thyme Square, Troy Tuscher, vice president of Granite Group, said "it has been our understanding that the bank was not going to proceed in this fashion and we have been completely caught off guard by this notification."
Reynoso said a Granite Group representative told her they were under the assumption that Exchange Bank would continue to work with them, apparently to restructure their debt.
And on top of that, "they told us 'you guys are fine, continue paying rents,' " Reynoso said. But when a notice of the trustee sale was posted two weeks ago on the doors of all six households that rent, it advised occupants the auction "may affect your right to continue living in the property."
At about the same time, Reynoso's husband, Fabian, a quality control specialist with a satellite TV company, was let go from his job when the company downsized.
"Within two days, we find out he's out of a job and we're out of a house -- a double whammy," said Reynoso, a stay-at-home mom with four kids from kindergarten to high school.
The Reynosos, like other tenants, are on a month-to-month rental agreement. They pay $1,500 a month for their three-bedroom unit and fear they may be evicted by a new owner.
Mrkvicka, the mother of three children ages 8 to 13, said it isn't easy to just find a new place. For one, they'll need to have rent and utility deposits to move somewhere. She works as an instructor for people with disabilities, and her husband is a winery worker.
"We live paycheck to paycheck," she said. "It takes family helping out from time to time."
But for the most part, the renters are taking the turn of events in stride.
"We will be fine, we will find a place to live," Reynoso said.
In the meantime, they stroll through their neighborhood of empty dwellings. Most of the units lack final touches, such as appliances, flooring and drywall.
"No one's coming through on the weekends looking at them," said Mrkvicka, adding that the model homes are closed and there are no real estate agents anymore showing the property.
"They built all these gorgeous condos. With the economy, they're all sitting empty. We're living in a ghost town," Reynoso said.
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