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Spec Homes Leveled by Bailout Bank

victorville california map spec homes Have you read the headlines surrounding the demolition of 16 never lived in, new homes near Victorville, California?

Patrick Thatcher, staff writer for the Daily Press first posted this VIDEO on Youtube.

Guaranty Bank says knocking the homes down is cheaper than finishing them, making some wonder if it could happen here.

The Texas-based bank has decided to have the spec homes destroyed in the desert community because the estimated $1 million cost to complete them was more than it could make selling them.

Four of the luxury homes, priced in the $280,000-350,000 range, were already finished, and the others were in various stages of completion. The estimated cost of the demolition was over $100,000.

"It's incredibly unusual I've not heard of it all in Texas I've seen that maybe once or twice in my whole life," said Harry Savio of the Austin Home Builders Association.

Posted by Lance Sonka on 05/08/2009 10:17 AM

Comments (9)

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Originally posted at: Spec Homes: Spec Homes Leveled by Bailout Bank

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9 Comments on Spec Homes Leveled by Bailout Bank

MAY

wow! interesting, thanks for sharing the story. Have not heard of anything like that happening in the north east yet, but would not be supprised if it happens. I cant help but wonder if they just took they lazy and easy way out of a problem they created.

Diego, thanks for your response. Word on the street is that there are roughly 300 more in the area slated to get the same fate.

MAY

Lance, this is shocking. I do understand the bank's position if the homes have been exposed to the elements and framing, etc. is compromised. But a finished home? That doesn't make sense unless they are just thinking of razing the community and selling the land and it would be more valuable 'cleared' than with a random home here or there. What a waste. They should sell the homes to people who can move them on their own land.

MAY

The bank has commented that it would take roughly 5 years to recoup its losses on the project (nearly $1,000,000 USD) were it to sell the homes outright.

The good news is, that it only cost tax payers $100,000 to tear the new homes down! (?)

I'm still thinking they just want to sell the land and make money on that. Banks have proven many times that real estate is not their game.

MAY

Lance , imagine if they would have donated them to Habitat for Humanity or another worthwhile charity ! I guess the banks didn't have any goodwill or profits to write off the donations ! Keepin' it Green !

MAY

Ed, thanks for your comment. It seems as if this bank is insensitive to the debacle that we are in as a nation... one that they indeed helped to perpetuate.

P.S. I closed my accounts at Guaranty Bank years ago due to poor customer service, I guess things are business as usual for them...

NOV

Hey Lance, I like the site and content! This is hard to imagine just bulldozing the homes. In our area of East TN there are some cabins and other homes that havent been completed, but the bank just tries to sell them in their current state regardless. It may take a while longer than the typical foreclosure sale, but they do sell...and for far more than what they could sell the land for by itself.

Keep up the good work - I like the site!

NOV

Thanks Jay, I agree. There might be more to this story than what is being reported.

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