Thursday, February 5, 2009

Umpqua bank takes a bath

From the Bend Bulletin:
A development that was conceived during the height of Bend’s housing boom but failed during its bust has gone back to the bank.
The Shire, a 15-lot, village-themed concept in the southeastern part of the city, was marked by its Old World housing styles and fantasy setting styled after J.R.R. Tolkien’s “Lord of the Rings” series. Umpqua Bank, which held a public auction for the property Dec. 29 that received no bids, foreclosed Jan. 16, according to Deschutes County property records.
The bank originally loaned $3.4 million to Lynn and Janet McDonald in December 2004. Lynn McDonald
died July 7.
“We obviously made the loan based on knowledge that we had at that time,” said Lani Hayward, Umpqua’s executive vice president of creative strategies, based in Portland. “Umpqua is pretty good at doing its due diligence on those kind of deals. This was a new development starting at a time that was unfortunate.”

Umpqua has listed the 6-acre property — which includes 14 vacant lots and one partially completed house — for $1.3 million, said Brian Meece, principal broker with Steve Scott Realtors in Bend, the bank’s listing agent.