Bank Demolishes 16 Newly Constructed Homes After Foreclosing
Shannon Bennet picks through the site in Victorville, Calif., where homes were demolished rather than completed and sold. © Nick Ut/Associated Press
Guaranty Bank recently foreclosed on 16 new and partially built homes in Victorville CA, a town 85 miles northeast of Los Angeles. Four of the homes were substantially completed and the other twelve were 50% completed or less.
Guaranty Bank, whose parent company, Guarantee Financial Group was recently issued a “cease and desist” order by the Federal Office of Thrift Supervision decided it was cheaper to just destroy the homes rather than complete and re-sell them. Home prices in San Bernadino County where the development was located have fallen 60% from their peak in 2006, according to the firm DataQuick.
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