Banks Tear Down New Home Developments

chisueMay 4, 2009

I'm seeing stories about REO's being leveled -- entire new, never-sold home developments in California and Ohio.

When is it best to level an unsold development? Stories cite squatters, municipal fines. Hard to understand that it wouldn't be better for the banks (and the municipalities) to reduce prices to get sales (and tax-paying homeowners).

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western_pa_luann

I haven't heard of that!

    Bookmark   May 4, 2009 at 2:48PM
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triciae

I've not heard of this either! Can you give any more info?

What comes to my mind is from waaaaay back during the REIT bust during the 70s. I had a subdivision in my portfolio in Rancho Mirage...can't remember how many homes...maybe, 200, or there abouts. Anyway, by the time we got the foreclosure over with the shells had about 3' of sand built up inside each start. I would have LOVED to bulldoze that subdivision. Instead, I GC'd completion & we sold every last one. So, I understand how such a decision 'might' be made...but I've not heard a word that it was happening.

/tricia

    Bookmark   May 4, 2009 at 3:42PM
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triciae

I've got it!

/t

Here is a link that might be useful: Bank of Irvine Bulldozes Subdivision

    Bookmark   May 4, 2009 at 3:59PM
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