COMMENT OF THE DAY: WHY THE BANK WON’T FINISH BUILDING THOSE TOWNHOUSES “. . . the bank would rather take the loss than become builders. The law in Texas puts certain long term responsibilities on the builder and the banks don’t want to get into it. I’ve talked to a few banks about finishing, or at least drying in, some of them and for them it’s cheaper to let them rot and write them off than to prolong the process and get financially deeper into a project that will probably never turn a profit. That money is making them +5.5% profit now if they invest it elsewhere, which over a very short amount of time, more than makes up for the loss. Bankers care about money not urban blight.” [SCD, commenting on Swamplot Price Adjuster: Some Unfinished EaDo Business]
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“The law in Texas puts certain long term responsibilities on the builder”
That’s a joke, right?
No. The TRCC may be dead but the laws they were supposed to enforce are still on the books. Homeowners can still sue if the builder doesn’t follow the guidlines. Builders are supposed to provide 1 year cosmetic warranty, 2 years mechanical, elect & plumbing warrant, and 10 year structural warranty. Just because TRCC is gone doesn’t mean that the law changed. Now, a builder can go out of business, change names, whatever and screw whomever he wants, but it’s not that easy for a bank. Imagine if you bought a house that a bank built and something was wrong; how many miliseconds would it take for a lawyer to be at your door with a lawsuit ready for you to sign? And how many things are probably wrong with these houses that have been sitting for years? I can’t blame the banks for not wanting to get into that mess. And as a builder the bank couldn’t pay me enough to accept all of the liability after finishing one of them.
Holy freaking smokes, the townhome(s) that I asked SCD about, which are decaying by Patronella’s off of Washington and Bonner, are actually being listed for the bargain basement price of:
$575,000!!!!
MLS#:50769001
Incredible!
Effing ridiculous even given the prime property. Sorry that is just plain stupid.