Summary of COMSTOCK HOMEBUILDING COMPANIES, INC.

Item 1.01 Entry into a Material Definitive Agreement

On December 23, 2008, Comstock Homes of Atlanta ("CHOA"), Comstock Homes of Raleigh, LLC ("CHOR"), Comstock Massey Preserve, LLC ("Massey"), Comstock Holland Road, LLC ("Holland"), Comstock James Road, LLC ("James"), Tribble Road Development, LLC ("Tribble"), Comstock Summerland, LC ("Summerland"), Comstock Landing, LLC ("Landing"), Comstock Wakefield, LLC and Comstock Wakefield II, LLC (collectively "Wakefield"), and Comstock Homebuilding Companies, Inc. (the "Company" and collectively the "Borrowers") entered into a Loan Modification and Forbearance Agreement ("Forbearance Agreement") with Wachovia Bank, National Association ("Wachovia") relating to approximately $22,200,000.00 of outstanding indebtedness (the "Secured Debts") owed by the Borrowers to Wachovia. Under the terms of the Forbearance Agreement, Wachovia agreed modify the Company's existing secured borrowing base revolver ("Borrowing Base") into three distinct loans, an $8,000,000.00 construction revolver, an $11,608,484.00 term loan and a $3,000,000.00 project loan. In connection with this modification the Company entered into three corresponding note agreements.

Under the terms of a new $8,000,000.00 construction revolver, the Company and Wachovia refinanced 33 lots from the Borrowing Base which represented $3,300,000.00 of the Company's outstanding balance (including accrued interest) prior to the modifications. The construction revolver will be used by the Company both to complete construction of the initial 33 lots and to fund construction of pre-sold, non-contingent homes to be built on lots initially financed in the new term loan. The new construction revolver matures on January 10, 2010. Interest on the Revolver is to be paid current on a monthly basis until maturity at an interest rate of LIBOR plus 400 bps. At closing the Company made an initial draw under the new revolver of $1,158,351.00.

Under the terms of a new $11,608,484.00 term loan, the Company and Wachovia refinanced 453 lots from the Borrowing Base which represented $11,608,484.00 of the Company's outstanding balance (including accrued interest) prior to the modifications. The new term loan, which matures on January 10, 2010, will accrue interest at a rate of LIBOR plus 400 bps from the date of closing until maturity and as such there will be no monthly cash interest payments required during the term of the loan. Lots financed under the new term loan can be either released to a third party upon a sale of the lot or transferred into the new construction revolver in connection with a non-contingent sales contract for the construction of a new home on the lot. In either case, the lot can be released from the new term loan at a price equal to the initial balance of the lot plus accrued interest.

Under the terms of a new $3,000,000.00 project loan, the Company, Tribble and Wachovia refinanced the Company's 167-lot Tribble Road development project in Atlanta, Georgia. Prior to the refinance the Tribble Road project accounted for $7,288,167.00 of the outstanding balance under the Borrowing Base (including accrued interest). In connection with the refinance Wachovia agreed to an immediate and permanent reduction in the outstanding indebtedness of the Tribble Road project to $3,000,000.00 resulting in debt forgiveness to the Company of $4,288,167.00. The new Tribble Road project loan, which matures on December 10, 2011, will accrue interest at a rate of LIBOR plus 400 bps from the date of closing until maturity and as such there will be no monthly cash interest payments required during the term of the loan.

On December 23, 2008 the Company issued a press release announcing the debt restructuring. A copy of this press release is attached hereto as Exhibit 99.1.