Comstock Homebuilding Companies Inc. (Nasdaq: CHCI) functions as a diversified real estate development firm focused on affordable, residential products. The company builds and markets single-family homes, townhomes, mid-rise condominiums and more.

The company today announced an agreement with Regions Bank regarding approximately $5.3 million of the company’s $144 million of secured debt as of June 30, 2008. Per the forbearance and conditional release agreement, Comstock will work with Regions with respect to its foreclosure on its real estate assets in Georgia. Regions will relieve Comstock from its obligations on three properties with no deficiency liability post-foreclosure.

Christopher Clemente, Comstock’s chairman and CEO said the announced deal will assist the company in gaining a foothold in meeting the demands of today’s market.

“The agreement we entered into with Regions today is the result of our continued focus on restructuring a significant portion of our debt and positioning Comstock to survive the current downturn in housing,” Clemente stated in the press release. “We are satisfied with the outcome of our negotiation with Regions and believe it is another important step in our plan to reposition our company to meet the challenges of the current market.”

As of December 15, 2008, Comstock will be formally released from its obligations to Regions and the foreclosed properties. Comstock does not anticipate any material future write-offs as a result of the agreement or foreclosures, which is a positive signal for is restructuring plans.

“While we have more work to do in this regard with certain other lenders, the Regions agreement, along with the recently announced similar agreement with BB&T, are in keeping with our objective. We remain optimistic regarding the potential for a positive outcome of our restructuring efforts,” Clemente stated.

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