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superbuc

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: April 10, 2008, 12:50:22 PM

Someone FINALLY taking some ownership for their mistakes instead of just blaming banks, the government, and/or their dog.  It's kind of long, so, I won't post it all.  Here's a little of it (and note one couple said he did well by them if you click the link and read it): 

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Foreclosures leave Clearwater's Island Estates residents disenchanted


"I swear on the Holy Bible I didn't get any money. The only thing I'm guilty of is complete stupidity,'' Donovan said.

Malcom didn't return a call from the Times. Another partner, Chad Evans, has moved to Ohio. He couldn't account for the missing money. Evans said he's doing "church work" and said Island Estates problems are the "blatant result of greed on the banks' part."

"I didn't run off with any money," Evans said. "I didn't leave anybody hanging high and dry.''

Though Donovan's deals weren't the only bloated transactions on Island Estates, they were more numerous and con**CENSORED**uous. Benchmarks set by his sales and purchases inflated residents' property tax bills and polluted real estate data. People confident they were sitting on $1.3-million houses have learned the homes are worth half as much.

Clearwater code enforcement officers have fielded calls about dead lawns and murky, bug infested pools at Donovan's houses. In what could be the low point of the troubles, the island's civic association is considering whether to stock one of Donovan's abandoned pools with mosquito larva-eating fish.

Donovan, despite claims of poverty, hopes to re-establish himself in the realty business — if the island will have him.

"I'm scared to go back since everyone hates me," he said from Virginia. "People love to see other people's misery. You learn who your real friends are."

http://www.tampabay.com/news/business/realestate/article443594.ece

John Galt?

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#1 : April 10, 2008, 01:21:04 PM

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A typical purchase was the house at 213 Leeward Island. Listed for $998,000 by an investor who'd bought it two years earlier for $530,000, Donovan bought the 50-year-old, 1,900-square-foot house for the recorded price of $1.3-million.

The owner got his $998,000. Almost all the rest of the loan money was kicked back to Donovan's business partners, allegedly to make repairs on the house.

Pretty sure that is more than just stupidity, that is fraud.  Without seeing the actual loan agreement, it is hard to say who committed the fraud, but something is fishy.



Biggs3535

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#2 : April 10, 2008, 01:26:32 PM

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A typical purchase was the house at 213 Leeward Island. Listed for $998,000 by an investor who'd bought it two years earlier for $530,000, Donovan bought the 50-year-old, 1,900-square-foot house for the recorded price of $1.3-million.

The owner got his $998,000. Almost all the rest of the loan money was kicked back to Donovan's business partners, allegedly to make repairs on the house.

Pretty sure that is more than just stupidity, that is fraud.  Without seeing the actual loan agreement, it is hard to say who committed the fraud, but something is fishy.

Yup...Wouldn't you play the "stupidity-card" too?



superbuc

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#3 : April 10, 2008, 07:07:20 PM


...agree with you both. He's also either stupid or naive to admit these things in a major publication.  I'm not near a legal expert, but, it seems to me that the "duped" folks he dealt with could use a lot of info provided in the article against him in a lawsuit.

The other reason I posted it is, I'm tired of folks blaming "corporations" for their problems.  I don't think there should be a bailout on any front.  Folks that have lost money in investments or other ventures aren't bailed out.  What's the difference here? 

king_frog

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#4 : April 10, 2008, 08:37:36 PM

Donovan is just an example of many others who did the same thing. Not only people in real estate but construction companies as well. I know first hand as I'm a victim.
Learned a lesson the hard way. The builder put the lot and home under construction in my name. I thought that this was a good thing. Then he started construction, took draws totaling several hundred thousand dollars without paying the subs or completing the work. Before I was on top of it, he kept the cash and filed bankruptcy.
Not only to me, but to 475 others.
A big scam...
Nothing should have been in my name until the CO was issued. Now I'm stuck with a half built home, 200,000 in liens and a bank that is pleading the 5th.
There is no one running to bail me out. I'm sick way down to the pit of my soul. I do not know how the guy sleeps at night.
I'm sharing this so others do not make the same mistake.
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