May 1, 2008

In an April 29 story about Paso Robles’ Vista del Hombre project, reported incorrectly that “Hurst has not foreclosed on Vista del Hombre, despite its contractual promise to protect investors if developers are delinquent on their agreements for at the most 180 days. That delinquency now approaches eight months.” In fact, Gearhart has not paid interest on the project for approximately two months.

Tags:, Gearhart

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By: Anonymous on 5/1/08

It seems odd that dewdog has such a different additude about the Hurst/Gearhart deal. What many don't seem to understand is that they want to search for the money. As if there is fraud and mismanagment they will find the money in some hidden account somewhere overseas or in someones mattress. What the truth most likely is that even if fraud and mismanagment are the reason, the money is often just gone, through exessive spending or just paying thierselves saleries or commissions or making the interest payments while projects just sit waiting for funding or mis calculation of construction costs. The truth as always lies somewhere in the middle in that grey area of life. So if there is any money left in these project accounts get it now while its still in the loan accounts. Don't let these same people continue to manage your money. Take control of the properties. Take a deep breath and then put together a team of qualified profesionals to finish and liquidate. You may need to hang on to some of the properties for a year or so to allow the market to recover, but take control.

By: Anonymous on 5/1/08

If the investors haven't seen interest payments for two months I wonder what makes anyone think that something will change. When it gets to 180 days the foreclosure will start. Good Bye golf course.When the interest stops it's trouble.

By: Anonymous on 5/1/08

interesting! Those senior shacks down by the Tracks, railroad that is, behind Staples in Atascadero, are not in the multiple listing anymore. Hmmmmm. How many sold? Not many I'll bet. However if Kelly got them all rented out and is sending the money to the investors maybe all is good. Is there an investor out there that can enlighten us to the truth on that project. Are you waiting for the market to return? Did you get your money back?

By: Anonymous on 5/1/08

Borrowers are either current or in default (which is defined by the loan agreement). Foreclosure is really only a term that applies when the lender repossess the collateral.

As for the situation with Mr. Gearhart – it seems he has stopped paying interest or principal to the lender, but has in his possession $28 million dollars of proceeds, or which very little has been spent on the project for which it was intended.

Where is the rest of the money? If it is not sitting in his bank account, there could be big trouble for this North County cowboy.

By: Anonymous on 5/1/08

there is a difference from being "foreclosed" and "being in foreclosure" and I would bet that neihter applies to this. Forebearance (spelling) is most likely whats going on here. Either way, the investos are not getting income and they may, some day, own their own golf course….ah, the silver lining!

By: Anonymous on 5/1/08

I am a little confused.

So Gearhart HAS made recent payments on the loans.

Has, Hurst, in turn paid out to investors? If so, then it sounds like there's not as much "story" here as I thought. If not, then it sounds like Hurst ought to be the focus of the next in this series.

By: Anonymous on 5/1/08

So did they foreclose? If not when will that happen.

ps: I thought you were supposed to stay out of north county! lol :)