Eric updated again. So the bank never received TARP money as first thought. And the houses were uninhabitable. Drug dealers and squatters must have done a job on those houses. ECK!

Which brings to mind the North Hills house that caught on fire today. 50 cans of cat food in the bedroom? Three cats died because of the massive piles of "collectibles" in the house. Who will clean up the mess? The homeowner's insurance company or the city?

You have to look at the bright side of this. Tearing down homes kept the demo guys working. And a lot of people got some wood and other building supplies cheap and no one was put out since the none of the homes had been sold.

Good night, and good luck, Paul.

Thanks for the additional information re: the bank. It's good to know they're working with Habitat. Someone thought outside of the box afteral.

Jozie,

I guess I wasn't clear enough as to why I am leaving the blogs. To qoate Samuel L. Jackson from Snakes on a Plane. "Enough is enough"

And that enough is Jared. I am fed up wading through the flood of bull sh*t that flows from his sick mind. I came to these blogs to have stimulating talk with NORMAL people. For entertainment. Not to deal with some mental case with his own agenda. KTLA won't do anything about him. So it leaves me no choice but to go. He has driven others away and he will continue to do so. And to encourage him to continue posting is only enabling his sick agenda.

So let me make this clear. I am leaving because of Jared and no other reason.

Also there is some computer problem that is not allowing me to read the comments on my home computer. The blogs come up, but all I see is the date and time of the comments. So I had to use the computer at work.

Take care.

Forrest

By Law under Fractional Reserve Banking a Bank can create $9.00 for every $1.00 on deposit. And if that doposit happens to be the depositors earned interest on their deposits then the Bank can add those balences to the base bank assets and create more money. $9 for every $1 on deposit. This is one of the ways the money supply is increased in the country..

A side note...

Sir Josiah Stamp, president of the Bank of England and the second richest man in Britain in the 1920s. He declared in an address at the University of Texas in 1927:

"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in inequity and born in sin . . . . Bankers own the earth. Take it away from them but leave them the power to create money, and, with a flick of a pen, they will create enough money to buy it back again. . . Take this great power away from them and all great fortunes like mine will disappear, for then this would be a better and happier world to live in. . . . But, if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit."

wadada

Forrest wrote

"you can not use depositors earned interest to falsely create an imagined profit isn't that the kind of thing you get all upset about large corporations doing?."

Banks have been doing things like this for years. It is called Fractional Reserve Banking.

Here is the link to the FED's own publication Modern Money Mechanics from the Chicago Federal Reserve Bank..

http://www.scribd.com/doc/3990690/Modern-Money-Mechanics

wadada

Jared;
You need to stay with your online biz cause I can see you know nothing about real estate development you can not use depositors earned interest to falsely create an imagined profit isn't that the kind of thing you get all upset about large corporations doing?. How much do you think the Bank was already underwater for per home? Prolly around $160K each hmmm so they could spend another 1Mill and loose that plus title fees, transfer tax, Realtor commissions, plus potentially care some form of liability for the work they would have to do and have to pay guards to protect them until occupied. Maybe it would have been good if Habitat for humanity bought them. (remember they had been vandalized and were not to code)

And who would buy those houses, Jared? The bank needed a buyer before getting one penny.

Hmmm...

Lets see if it really better for the bank to destroy or put the million into fixing them up...

16 homes lets say they sold them for $160,000 that would equal over $2.5 million..

And now that they are bank owned they can work special financing with the potentional buyers.. SO they may get most of the contracts if sold..

Now those who finance home buyers know that the average home buyer only stays in home no longer then 7 years. Now those of you who have a mortgage you know that in the early years say the first 7 of your loan. How much of your payments go to principle an how much goes to interest?

And if these 30 yr mortgages the home buyer will have paid over $300,000 for each of the homes...

hmmm... $4.8 million...

Just a thought

wadada

Oh, I agree with you, PLM, it was a waste to tear down 16 houses. Unfortunately, they hadn't posted a guard. And the criminal element devastated the buildings. Let's not forget the additional work needed to make the dwellings habitable and accessible. A creative mind might have found an alternate solution. Bottom line: Tearing down the houses took those Toxic Assets off the books. While the bank may have earned public disdain, at least they'll make some money on the deal. They salvaged what they could. What couldn't be recycled will become mulch.

You're right Jared where was the trailer with the night watchman stationed in it to protect their investment.. I agree with you on this ...they wanted it to be left to the vandals ..So they could justify tearing it down.

Jozie so you say that the banks didn't want to "continue to drain TARP funds."

Of course not..in my opinion it looks like they want to take the tarp money and do other things instead of save homes. They probably want to take it and oh IDK ..like put it in an off shore account in the Caribbean? Some CEO of Guaranty Bank knows exactly what they plan to do that tarp money and from the looks of their money saving methods ...I betcha the government would probably not approve of what they are doing with the funds. Tearing down homes for only $100k is a much better use for the funds ehh?

Sorry but I don't agree. The homes should have saved somehow and sold at a reduced price. Not trashed..such a waste.

As hard as it must have been for the bank to let these properties go I don't think they had a choice. Yes, the vandalism and drug trafficking were a problem. Not too late to rectify, but the banks are carrying so many repossessed properties these 16 houses were an expensive burden that would continue to drain TARP funds.

Eric Wrote:

"The developer filed for bankruptcy. A bank ended up acquiring the homes in foreclosure.

Vandals moved in. Drug dealers took over. People were coming by and stealing sinks out of the houses."

Hmmmm... seems the vandals moved in after the bank acquired the properties thorough a foreclosure..

So if the home where now the property of the bank, why didn't the bank hire someone to work as a guard to protect their newly acquired property to now protect the assets of the bank.

IS it that they didn't want to protect the property and let the values of their losses as a result of vandalation and other factors go up so they could get more money from the government in their bailout request..

And remember that with now banking regulations that were put in place about a month ago which allows the banks to inflate their assets.

By not hiring someone to guard their property, it kind of looks like they wanted this to happen..

just a thought..

wadada

Jozie,

I happen to know a thing or two about building homes. Yes it could of taken lots of bucks to finish those homes off in the manner they were originally intended for.... which obviously was to get top dollar for them. From the look of the homes they would have sold in the million dollar range in a good economy. So since they no longer can get that with this economy then it’s let’s just tear it down instead??? What about using creative thinking? Those homes could have been sold in an "As Is" condition. The banks could have made iron clad contracts that any finishing of the homes would be on the buyer. The landscaping of the individual lots could have been on buyers. the finishing of the community common areas could have been either negotiated with the buyers and/ or treated as a co-op with the finishing placed on the group of new home owners being responsible. The streets might of been a little more tricky but they could of probably worked something out..maybe even there could have been tarp money to contribute.

But these banks should not be allowed to tear down houses that have never been lived in just because they can’t get top dollar for them now and think they can do better with just selling the raw land. That is so wasteful. They were given tax dollars to help them through their financial hardships. Yet again we see them pocketing the money instead of reinvesting into housing industry...which is why they received the money from the government. So what it was going to cost them. Isn't that why they got the tarp money in the first place???? So they could continue to make housing opportunities available? Not destroy homes so they can keep the money!

I can't imagine that the government would have endorsed this course of action... especially after specifically giving banks money to continue to create home ownership opportunities for taxpayers.

I think it stinks. I think the banks with all their money and all the rich folks running them should come up with a better way of dealing with new construction homes that are yet to be completed ... than tearing them down.

I do hope that any other homes in a similar situation will be protected from the same fate that these homes met with.

Are we thinking about the numbers here: $100K to tear down the houses versus $1million+ to complete the project?

If the banker continued to pay fines AND spent the $1million to complete the project AND paid for security to patrol the property until it was sold AND required the city to pave roads AND add utilities, then sell the houses for less than $300K the taxpayers would be yelling WASTE OF TAXPAYER MONEY. Either way the bank couldn't win. They took the cheaper (cost effective for the taxpayer) way out.

Like Brian Groen said, this is going to happen in other communities. If we don't like it, what are we going to do about it?

Hey Eric,

In regard to your update... Wessman the rep from Guaranty Bank’s statement to you...sounds like something Bernie Madoff would have said after he got caught with his hands in the cookie jar! Don't believe him.

These banks SHOULD not be allowed to knock down perfectly good homes. Unless the construction wasn't sound and they could have presented a hazard to future occupants. Which didn't seem to be the case. They had to spend more money to complete them and they weren't prepared to do that. The banks are forcing the government to intercede in their unscrupulous behavior... yet they all complain that the don't want the government telling them what to do. Then do the right thing!! And don't ask the government to bail you out..and after you get the money don't become greedy land barons who rape the land, destroy property and carelessly add to the waste pile up needlessly. These bankers have no regard for finding ways to help people. Just foreclosures and greed. There should be a law against what they did yesterday...and it should not be allowed to continue.

Remember how the Lawyers and Attorneys developed a reputation of being untrustworthy?

Well now ... The bankers of today make the lawyers look like Boy Scouts!

Paul, if you're still around. (If not, -mike, will you pass along this message for me.)

You are not thin-skinned so I doubt someone upset you. And I hope, if you're still leaving us you find another challenging outlet more for that quick mind of yours.
It's been a joy and a privilege to spare with you, Paul. From your first comment I knew you'd be interesting. You never disappointed. Fight. You must be Irish. *Holding hands up.* Ok, ok, I'm not trying to stereotype you. On St. Patrick's Day we're all Irish. You have that volatile spirit - you question, dare, baffle. I like that. Makes for edgy conversation. 'Course it's been a while that I've experienced the cutting edge of your blade. But that's ok. I've enjoyed watching the battles.

May the Force be with you.

Testing new blog set up.

Can we leave a space between paragraphs?

What does the preview window look like?

Oh, darn, still using capshaws. Drats.

Wow! take an afternoon off and all types of changes occur. The pages look different ...better? But is this a twitter page? Is this a trick?? LOL

Paul why ya leavin buddy?

This time I have to agree with Jared (on the statement he just made ) not on everything he writes... sorry Jared but I do not agree with everything you write..but you already know that...and you did say we agree to disagree.. and that I am in agreement with! Huh?

Any who ...too many good ones have left ..would be sad not to see you around here Paul when I pop in and out. But as they say in the movies...

A man got do ...what a man gotta do! Which movie was that from??? Sorry... I digress...So if you're leaving ..I ve enjoying discussing the issues with you.. Stay? but if not...good luck to you..my friend.

New format?? Kinda snazzy! Thanks Jeremy

around closing

end if statement

should have a -- after the ! before the [

Dear Webmaster

There is a error in where someone was trying to comment out this:

I beleive it should be this instead

wadada

woah woah woah wait a minute....

Is the move to a new server going to disrupt my ability to read and post?

Say it ain't so!!!

I need my Eric Spillman blog fix, man! I'm getting the shakes.... tell, me it's gonna be alright... i'm getting the sweats thinking about a change.

If its this twit thing, well, i'm outta here too. My whole world is spinning out of control, I don't like change...

yeah especially "that CHANGE" which brought many of us here in the first place.

In any case, R.B. I know the locations you speak of well and hope for that area to turn around or it too may suffer the same demise.

Eric - thanks for the update and folow-up to the story. Great research, my friend.

Paul - this is not the end...

-m

Paul wrote:

"Mike... you were a worthy opponent."

Why do you need an opponent on this blog?

Sounds like you like fighting with people that you have to point out that they are an opponent.

In the words of Rodney King, "Can't we all just get along?"

Can't you just agree to disagree leave it at that?

PLM and Jozielee seem to be able to...

And regardless of what you have said about me I still love you as a brother in the human family..

And if you were ever in need of help, if i could i would still be there to help..

Have a PEACEFUL LIFE Paul!!!

wadada

Eric,
Thank you for doing the story on the Victorville Homes. Please do more stories on Victorville. We have a serious crime problem here in the High Desert. The crime rate has doubled here and is at the top in the nation. There are not enough educational options for VV residents to persue an education and the only jobs that come to this area are minimum wage jobs.

Well, I guess it's time to follow the others who have left and move on.

The blogs have stop having any interest for me since Jaren has highjacked them with his endless bullsh*t.

Jozie, Dan, Forrest and PLM it's been fun when it lasted. Take care.

Mike you have my email if you feel the need to reach me. Take care my friend, you were a worthy opponent.

Good bye.

Talked to the webmaster and the they were moving the KTAL site to new servers and as a result the links to what is known as cascading style sheets which hold the formatting of the page was missing..

If anyone was wondering about why the pages were out of whack for a while..

wadada

the youtube.com original story and video is posted on this youtube channel from a Ron Paul supporter..

http://www.youtube.com/user/visionvictory

This is where the original video that here earlier came from...

wadada

Eric

Thanks for updating the story with the name of the bank...

wadada

Eric

I used to live in Cypress, I go there a couple of times a month to visit friends. Between the early 90's to 2000 I saw two or three properties that were the size of gas stations have 2 to 6 small homes on them each if not more. Since 2000 until the economy tanked every land space, every strip mall, even an old egg farm store in the city was torn down for small housing construction.

Right now there's a housing development site that has halted there and one less then a couple of minutes away in Buena Park in what used to be a strawberry field that also seems to have halted because of economic times. After reading your blog and seeing your report I have a feeling those two developments will probably meet the same fate.

Hi Eric Your story on homes in victorvill was to short what bank was behind it thats the real story/news there are so many NEWS storys about banks not helping out people with there bail out money KTLA only reports fluf its all about movie box office and were to eat weather /traffic WERE is the real news ??? 5 hours with only 3 news stories your more of Happy NEWS and fluf its very hard to watch

Eric, I understand the banks reason for destruction but what about the all the parts that could have been used by charities like habit for humanity...the doors, windows, cabinets, and anything else that was there. It is sad that when people decide this is their only choice is destruction, they don't think about those in the world that don't have anything. Not to mention; the tax writeoff they could have taked for the donation. I know these are probably lost but I heard the destruction company said they have more elsewhere. If you could let me know the bank I would gladly write them.

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." ~ Thomas Jefferson

Hey, Brian:

Thanks for the background. We were in Lake Elsinore last week and noticed the many new housing developments still in progress (which was a surprise) and the many finished strip malls with empty office and store space. Hope that beautiful community pulls through the stagnant economy.

I am outraged and appalled that these banks who even received bail out money ...that chose to tear down these large homes instead selling them at a discount. They say it would cost them over a million to finish the community. I can’t understand why there couldn’t of been a more feasible way to get these homes sold. Why not sell them at a discount in an “as is condition” with programs set up for the new homeowners so that they could finish any construction in their newly purchased homes themselves, they could have finished all the landscaping themselves as well.

Is this what the bailout money was intended for? I think not! The taxpayers gave money to the banks to keep the banks in business ...and what do the banks do? Tear down brand new homes that were all ready built instead of selling them and financing them!

This is completely wasteful... And outrageously wrong in so many ways. In a world of a movement of creating sustainable homes and buildings tearing down homes before anyone has ever lived in them...this is a travesty!

I do hope the federal government goes after this bank and heavily penalizes them so this does not become the way to get out of debt!

I have sold new homes for years, the model homes are on temp power, no sewer hook-ups (have to use a porta potty) for just those models to be finished and sold would cost so much. Streets would have to be down, sewers, street signs, electric, phone, water, permits, permits and more permits would have to be signed off. Thats why to break even a builder needs to have the whole! community done. Thats also why the models are sold last. My wife is selling her models in Lake Elsinore right now. And the city of Lake Elsinore wants fees on top of more fees before they sign off on them. Really you can't blame the banks on this one. I have seen the many sides on this, there are models standing in San Jacinto, Hemet, Westchester all with the same problem as were you are. Can't blame the bank on this one, Sorry! Brian Groen, Canyon Lake (951)741-9998

Eric

Something else you learn if you watch all the parts videos..

The bank that ordered the demolition also was a bank that received TARP funds in other words the bank was a bailed out bank....

wadada