The Home Front

Bank Demolishing New Homes Instead of Selling Them

By Luke Mullins

Posted: May 5, 2009

The housing crash has hit Southern California so hard that one bank found it preferable to take the wrecking ball to 16 homes there rather than to attempt to sell them, The Wall Street Journal reports. The bank obtained the homes through foreclosure.

Guaranty Bank of Austin is wrecking the structures to provide a "safe environment" for neighbors of the abandoned housing tract in Victorville, a high-desert city about 85 miles northeast of Los Angeles, a bank spokesman said.

Victorville city officials said the bank told them the cost of finishing the development would exceed what they could sell the homes for.

The bank also faced escalating city fines as vandals and squatters took over the sprawling housing project, leaving behind graffiti and drug paraphernalia, city officials said.

Have any of your people BEEN to Victorville???

All of you folks condemning the bank for this "wasteful" destruction - have any of you ever BEEN to Victorville? The temperatures can easily soar above 100 degrees so we are not exactly talking "Garden Spot" here. It is an area of cheap housing for folks who either enjoy the hot, hot climate and distance from more populated regions or those who can not afford the cost of housing closer to the cities.

If you are going to condemn anyone, condemn the idiotic developer and the original bank for going forward with this project in the first place.

I have seen what can happen when unfinished homes stand empty. The area becomes a crime magnet. If anything, this bank did the entire area a favor by wiping out this foolish mistake.

Lynn of LA of CA @ Jun 21, 2009 14:19:54 PM

Ignorance is bliss

And apparently you are all blissful people. If the bank could sell the homes more profitably than pushing them over they would do so.

Haywood Jablome of CA @ Jun 15, 2009 11:46:18 AM

Interested in buying a new home for 55Plus

call immediately. (952) 431-7247

Alan Stuart Cohen of CA @ May 13, 2009 21:07:16 PM

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The Home Front

The Home Front

Associate Editor Luke Mullins tracks the treacherous housing market and explains how to unload a five-bedroom McMansion or even find that dream home.

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