POST FALLS - A fire destroyed a gated Post Falls mansion along the Spokane River next to what is called the "Amway house" this morning.

No one was inside the 10,000-square foot home, said Len Wallace, who owns the home with his wife Pam.

Wallace, who said he had stayed the night at a large shop on property he owns on Blossom Mountain south of Post Falls, said he wonders if the fire is associated with a natural gas fireplace.

Wallace said he has owned the home for 10 years and it's in the foreclosure process.

"I figured that I could save it (from foreclosure)," Wallace said.

Neighbors reported the fire at the home on the north side of the river just south of the intersection of Handy and Plaza at 6:30 a.m.

"I looked out the window and saw flames 30 to 40 feet in the air," said Louise Fields, who lives three blocks away. "The whole house was engulfed in flames."

Wilamena Berg, a neighbor who lives on property adjacent to the home, said she was awakened around 6 a.m. by loud "popping" sounds outside her house.

She realized they were explosions after going outdoors to see the flames engulfing her neighbor's home.

"I was concerned the wind might blow them over to my house," Berg said.

Wallace is the developer of Raspberry Ridge, a subdivision on the mountain south of Post Falls. He said he was a victim of a business fraud in Montana and is going through bankruptcy.

The home has seven fireplaces, a swimming pool, cherry woodwork, tile and mirrors.

"It was a beautiful home," he said. "I can't believe with all the brickwork and sheetrock that it would burn like that."

He said there had been some recent problems, including water damage from a dishwasher.

Neighbors reported seeing household items being moved from the home in recent days.

An investigation continues.