Destroying brand new homes

4/29/2009:

Why not just sell them on the cheap?

One Hoboken411 reader sent the video below – of banks in southern California destroying new homes for “no reason.”

Another reader responded to this and said:

“That’s one way they can get people working again.. hire them to knock all the new homes down.. You think they would sell them for a dollar just to get them off the books but no. They would rather destroy them than to lower the prices to help people.”

What is your reaction to this?

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13 Comments on "Destroying brand new homes"

elainetyger
Member
elainetyger

I read about a big problem with squatters taking over foreclosed homes, in addition to people who got foreclosed on still getting fined and pursued by their cities for code violations if the cities couldn’t figure out who held the mortgages. I think this is a great solution.

broken
Member
broken

Oh noes – why do banks hate poor people? the evil capitalist profit monkeys are conspiring to keep middle class america in chains with their toxic debt war crime origination! Viva la revolucion!

homeworld
Member

I don’t see what the problem is. It would cost the banks more money to fix these poorly constructed houses to bring them up to code, than to tear them down and try to sell the property.

They’re a liability.

niceguyeddie
Member
niceguyeddie

Also, the threshold for keeping the homes isn’t $0, it’s probably closer to 20-30% x (Original value of the loan – market value of the land) to get the tax effect of the investment. I have a feeling that knocking these down was a no-brainer, and if the bank can get the property re-zoned, they have a lot more options. I’m not sure why the bank would be paying code violations if a certificate of occupancy hadn’t been issued yet, but then I rarely get enough information from the news nowadays.

MidnightRacer
Member

Don’t forget that he also mentioned that the banks were getting hit with daily code fines. I’m assuming that building permits, timelines, etc, as well as bad work were causing daily fines by the city/county.

So, if every single day, you were getting hit by escalating code fines, and at some point the numbers paint the picture clearly, knocking them down would be the thing to do… in addition to what I said in post #1.

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