' Quintin Ellison offers this in-depth look:
...[L.C.] Jones slashed the prices in The Ridges with one purpose in mind: to sell as many lots as possible, as quickly as possible. He and his investors anticipate developing more lots in the subdivision. They’ll sell those at higher prices, but the asking price on these is what the depressed market will bear, Jones said.
Jones believes he can command higher prices later if he can convince people that The Ridges is a viable, happening development with an on-site, caring developer. This is the first step in his many-stepped plan for The Ridges, and for other abandoned developments in WNC that he might take on. Jones is currently checking out another development in the Asheville area. He is a man who envisions dollar signs where others see vast money pits.
Jones and his investors can take their pick: the region’s landscape is littered with these tombstones of the once prosperous, or preposterous, WNC real-estate scene.
The selling in The Ridges started just after 9 a.m. The first lot sold in two minutes. Eight lots had sold in 10 minutes, nine lots in 12 minutes, 12 lots in 20 minutes, 21 lots in an hour. Thirty-one lots were sold by 11 a.m. A prior advertising blitz targeting Florida, Georgia, Alabama and other states paid off. Jones was having a very good day; indeed, by day’s end he’d unloaded 43 lots — 18 of them cash payments. ...
More than half those who bought the original lots in Wildflower went into foreclosure. Some because of an inability to make payments on their lots; others who found themselves upside down on a mortgage, owing more than the lot was worth and opting to let banks take over.
A local financial institution, Macon Bank, filed two civil suits claiming that it had been duped into making questionable loans in excess of $3.5 million to people buying some of those lots.
Macon Bank sued Beverly-Hanks Mortgage Services of Asheville and two of its brokers for, among other allegations, financial wrongdoing, defying bank instructions and setting up an interest cash-back scheme for borrowers. Additionally, the bank sued the lawyer handling property closings at Wildflower, the lawyer’s title guaranty company and five property owners. The lawsuits are wending through Macon County’s court system. ...Read the full article
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