Wednesday, November 12, 2008

Buena Vista Homes slides towards bankruptcy

From the Oregonian:

Public records show that Pollock, 47, and his affiliated companies face a growing list of mortgage defaults, past-due construction bills and unpaid homeowners dues.
Buena Vista's new stone-fronted headquarters in downtown Lake Oswego sits unfinished with plywood covering parts of the building. Banner Bank of Walla Walla says Pollock's company, Pollock Commercial Holdings LLC, has defaulted on its $5 million construction loan, and his general contractor has gone to court to collect $1.3
million in unpaid bills.
But Pollock's bigger problems are with his housing projects.
Sterling Savings Bank sued Buena Vista because it said the company stopped paying its loans. The bank is seeking to recover about $11 million in loans and foreclose on about 50 lots Buena Vista owns in a Happy Valley subdivision, areas hardest hit by the Portland area's housing slowdown.
Pollock blamed the commercial project problems on the lender that he said backed out of commitments to provide more funding.
On his housing work, Pollock said he stopped paying loans on his rentals because the rents didn't cover his mortgage. He hopes to renegotiate those loans and possibly resell his subdivision lots. But that plan, he said, was stalled when Sterling Savings Bank stopped the talks after months of negotiations.
"The only way to start negotiations with the bank is if you're in default," Pollock said. "I don't think they know what to do. Do you take the home? Do you wait to see if you get
any of the (federal) bailout?"
Sterling Savings Bank filed two lawsuits against Pollock and his companies. The first seeks to foreclose on homes and lots, many of them in Happy Valley's Lincoln Heights subdivision.
The second says Pollock or his company had defaulted on loans for 20 rental properties, all but two in Happy Valley. A Clackamas County judge appointed Ted Durant & Associates Inc. as receiver and directed it to collect rents from Pollock's
rental homes.
But in court filings, the receiver accused Pollock and his company of demanding that the tenants continue to pay rent to Pollock's company.
One tenant said Pollock contacted him and was "very pushy, articulated very strongly that he was still the person in charge and had ownership/control of all the properties," according to an e-mail the receiver sent to Pollock's lawyer.
Pollock denied pressing the renter for the payment and said he has collected no rent from the properties since the receiver took over.

It seems like Roger Pollock owes everyone. Contractors, suppliers, banks and his own home owners association are all asking for a piece of the $75 million auction proceeds.

It will be interesting to see how many people buy from him in the future given the fact that Roger screwed over his previous customers via their hoa. Just remember…

Roger will always do what is best for Roger.