Thursday, May 7, 2009

Bank Incompetence on the Rise as the Government Continues to Bail Them Out

Guaranty Bank of Austin, a Texas bank has demolished 16 new and partly built houses acquired in Southern California through foreclosure, figuring it was better to knock them down and take a complete loss rather than to attempt to sell them for a reduced price.

The homes are located in Victorville, California. Victorville city officials said the bank told them the cost of finishing the development would exceed what they could bring in by selling the homes.

The homes were “substantially” complete more than 90%. The median new-home price in Victorville is $265,990, according to Hanley Wood Market Intelligence. Homes in the Victorville development were priced at a range of $280,000 to $350,000 in early 2008, now comes the difficult question and one that is simply a matter of good business judgment.

Is it not better to sell the homes and get something, perhaps a price of even $200,000 than to knock them down and take a complete loss? But then again who ever said what Bankers do made sense!

Jack Ferm has written several books which can be downloaded from his web presence at They include: “Goliath Must Fall”; “Project MKUltra”; and “Into the Darkness"