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The 1% Also Don't Pay Their Bills: 10 Ultra Luxury Properties In Foreclosure

Tyler Durden's picture




 

As we reported yesterday, something odd is happening in the US, which supposedly is deep in a "housing market and economic recovery" - foreclosures on ultraluxury homes, those worth $5 million and over, have soared by 61% in 2013 (even as overall foreclosures continue to decline due to the well-known and much discussed "foreclosure stuffing" process, which means millions of properties are held in bank shadow inventory just waiting for the moment to be unleashed and end the implicitly home price subsidy abused by banks for the past three years). Granted, the overall sample is relatively small, with fewer than 200 properties in the ultraluxury category compared to 1.2 million for all properties tracked, but as RealtyTrac notes, "each of these high-value properties represents a much bigger potential loss for the foreclosing lender compared to a median priced property."

Additional thoughts from RealtyTrac:

This trend may indicate lenders are now financially stable enough to more comfortably weather the big-ticket losses that these properties potentially represent. In addition, an improving housing market means more prospective buyers, even for these ultra high-end homes. A bigger buyer pool translates into higher sales prices on these properties, allowing lenders to recoup more of their losses on these jumbo loans gone bad.

 

"A home selling for $5 million or above represents the ultra-luxury end of the market, and so far in 2013 we’ve had 34 properties close over that price with the average sale being $7.7 million,” said Emmett Laffey, CEO of Laffey Fine Home International, covering the five boroughs of New York.  “Any foreclosure properties in this type of ultra-luxury market usually get purchased very quickly since there is one thing all super rich buyers want – an outstanding deal on a real estate transaction, and in most cases foreclosures of this magnitude come with several million more dollars of built-in value.”

Regardless of the arbitrage opportunities available to "all cash" buyers, who would be happy to park some cash in real estate, the fact that ultraluxury foreclosures are soaring also means that even the "1%" is starting to succumb to reality and beginning to feel the pressure of a financial reality in which only the "too biggest" can never fail.

So what are the properties in question? The photo gallery below, courtesy of RealtyTrac, shows just where any given $5 million + property stopped making its mortgage payments.

MONTAGE, IRVINE, CA 92614

This home nestled on a bluff overlooking the ocean was listed for sale at $15.9 million but the foreclosure judgment amount at the foreclosure auction scheduled in November was $12.8 million.

PACIFIC COAST HWY, MALIBU, CA 90265

This foreclosure auction property is located right on the water on Pacific Coast Highway in Malibu. It features two detached units and was listed for $9.5 million, but the opening bid at the foreclosure auction in November was $8.8 million.

CUESTA LINDA, PACIFIC PALISADES, CA 90272

Built in 1990, this 5 bed, 6 bath estate was scheduled for foreclosure auction in November with an opening bid of $4.1 million, although the assessed value of the property is $5.5 million.

 

KIMRIDGE RD, BEVERLY HILLS, CA 90210

This beautifully remodeled 5 bed, 7 bath estate was scheduled for foreclosure auction in October with a foreclosure judgment amount of $7.5 million. The grounds feature panoramic views of the ocean, a putting green, and stunning pool area.

 

COLONY VIEW CIR, MALIBU, CA 90265

A beach lover's dream! This pre-foreclosed, 5 bed, 5.5 bath single-family residence was custom built in 2001. A Notice of Default was filed in October with a default amount of $200,000, meaning the owner was behind that amount on mortgage payments.

 

BUSCH DR, MALIBU, CA 90265

This pre-foreclosed French Country hillside residence features 6 beds, 7 baths and sits on 8 acres.A Notice of Default was filed on this property in June, and at that time the homeowner was an estimated $125,000 behind on mortgage payments.

 

S OCEAN BLVD, DELRAY BEACH, FL 33483

Listed for sale at $13.5 million, this exquisite single-family residence in Florida is in the first stage of foreclosure. A dramatic and elegant floor plan makes this 6 bed, 9.5 bath home perfect for entertaining. The initial foreclosure notice was filed in July.

 

SANCTUARY DR, BOCA RATON, FL 33431

Beautiful single-family "sanctuary" in pre-foreclosure. It features 5 beds, 10 baths and has a fantastic pool and patio area with tranquil views. The pre-foreclosure notice was filed in September with an estimated total outstanding loan balance of $8.1 million.

 

SEA RIDGE DR, LA JOLLA, CA 92037

This 5 bed, 4.5 bath fully-furnished home was scheduled for foreclosure auction in November with an estimated total outstanding loan balance of $5.5 million. It features remarkable panoramic views and is located near many of La Jolla's unique shops.

 

ARROWWOOD CIR, HOUSTON, TX 77063

This bank-owned property was repossessed by the bank via foreclosure back in April 2013 for an estimated $6.3 million. It features 8 bedrooms, 13 baths and is situated on over 23,000 sq/ft.

 

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Sun, 12/08/2013 - 16:47 | 4227234 Headbanger
Headbanger's picture

I'll take the Delray Beach !!

But does it have an indoor gun range??

At least 50 yards, for my revolver practice.

Oops.. Am I bragging a little??

Sun, 12/08/2013 - 17:30 | 4227333 kliguy38
kliguy38's picture

 You might want to quit worrying about long distance revolver shots and work on your 30 round clip ARs......because that house won't be a "chick magnet" but a "chit magnet" when the peeps come calling........keep the revolver though.......you can put it to use before they get a hold of you......because they will want to spend some time working on you for what you have hidden.......

Sun, 12/08/2013 - 17:35 | 4227347 Handful of Dust
Handful of Dust's picture

"But don't for one second think that home ownership is all sunshine, rainbows, and ice cream sandwiches. There are serious trade-offs that you should know, understand, and accept before signing on the dotted line." (Motley Fool)

 

Moar from MF:

 

1. Mortgage debt -- a marriage you can't divorce
According to the Census Bureau, the average home price in 2010 was $272,900. A traditional mortgage will finance 80% of that, or just over $218,000. At the same time, the Census Bureau also reported that median household income in the U.S. was just over $51,000.

Are you comfortable owing over four times your total gross income (before taxes, mind you)?

 

Full article:

http://www.fool.com/investing/general/2013/12/08/dont-buy-a-house-until-...

Sun, 12/08/2013 - 17:57 | 4227398 NoDebt
NoDebt's picture

Hold on- isn't that one in Boca the place where that kid went high-end squatting a few months back?  That looks AWFULLY familiar for some reason.

Sun, 12/08/2013 - 18:14 | 4227437 Dear Infinity
Dear Infinity's picture

I think these people realize better to get out now, than deal with a "buyers" market when interest rates rocket...

Currently sitting just under 3% on the ten year, could get ugly real fast.

Sun, 12/08/2013 - 21:14 | 4227918 lasvegaspersona
lasvegaspersona's picture

the 10 year the 10 year the 10 year...all this fuss over the 10 y....OMG holy mfing she ite, the fing 10 year...

last time (way back in September this year) it almost touched 3% the world almost fell apart.

 

This is going to be the best interlude before the finale of all time...watching Ben deal with the rising rates. I think he thought he was going to get out before it fell apart again, but nope, Ben can't even whisper the word taper and he'll look pretty silly announcing QE...what is it 6 now....but what is a central banker facing reality to do?

Yes, this is the one thing I will watch closely. We already have a few non voting members suggesting that 'sooner or later' taper must happen. Not Ben though. If he says it the rates go over 3% and Morgan Stanley sets off the chain reaction. If he increases QE the whole world knows it is really over for the dollar.

Who knows, maybe an asteroid will impact Earth and folks will have their attention diverted, otherwise...this will be good!

Sun, 12/08/2013 - 20:55 | 4227868 PT
PT's picture

Oh, then I guess you really do need customers if you want a business that makes you rich.

Sun, 12/08/2013 - 20:59 | 4227880 PT
PT's picture

You know "they" don't like you any more when you get the foreclosure notice.  "But I thought I was on the inside."

Sun, 12/08/2013 - 21:00 | 4227888 PT
PT's picture

... and ...
"But why would I worry about a 5% increase in debt when the value of the property goes up by 10%?" 

Sun, 12/08/2013 - 21:34 | 4227973 PT
PT's picture

I'm guessing these were the houses that weren't bought with laundered drug money?

Or maybe, after all costs are taken into account, it turns out you lose less money by keeping it in a, a, b-b-b-bank? 

Sun, 12/08/2013 - 16:42 | 4227235 ToNYC
ToNYC's picture

Too much fun; too many boring friends. Shut it down.

Sun, 12/08/2013 - 16:45 | 4227237 Cognitive Dissonance
Cognitive Dissonance's picture

Yes. But for the 1% it's just a 'bidness' decision and not a question of morals.

<Laws Morals are for the little people.>

Sun, 12/08/2013 - 17:27 | 4227334 Skateboarder
Skateboarder's picture

And we manage to do it with smaller brains. What elegance.

Sun, 12/08/2013 - 16:45 | 4227239 BurningFuld
BurningFuld's picture

No room for my fucking horses at any of those places...pass.

Sun, 12/08/2013 - 17:19 | 4227311 DeadFred
DeadFred's picture

Only a couple of them would survive the Great Tsunamis of 2014. If you want beach front try Wichita.

Sun, 12/08/2013 - 17:29 | 4227335 TeamDepends
TeamDepends's picture

Exactly what we were thinking.  At least they'll have a nice view of their last few seconds on earth.

Sun, 12/08/2013 - 17:38 | 4227351 Occident Mortal
Occident Mortal's picture

"my fucking horses"

Isn't that illegal?

Sun, 12/08/2013 - 17:48 | 4227370 TeamDepends
TeamDepends's picture

Not in California if the horse claims to be "trans-species".

Sun, 12/08/2013 - 18:48 | 4227510 johnQpublic
johnQpublic's picture

if you like fucking horses, you can keep fucking horses.

Sun, 12/08/2013 - 19:45 | 4227666 BurningFuld
BurningFuld's picture

That would be "fucking my horses" not "my fucking horses".

Sun, 12/08/2013 - 20:26 | 4227779 SloMoe
SloMoe's picture

"That would be "fucking my horses" not "my fucking horses"."

Tomato tomahto. Gitty-down cowboy...

Sun, 12/08/2013 - 18:36 | 4227498 toady
toady's picture

One of them said 8+ acres. You must have a lot of horses!

Sun, 12/08/2013 - 16:47 | 4227240 Kirk2NCC1701
Kirk2NCC1701's picture

Yeah, that's how the 0.1% gets fancy property on the cheap:  Drive other sharks onto the blades of cashflow crisis.

How'd you think old man Bush got his Texas ranch all those decades ago?  There is little honor, even among vampires, sharks and snakes.

Sun, 12/08/2013 - 16:50 | 4227244 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

Malibu, too much my man!

Sun, 12/08/2013 - 17:13 | 4227305 Dick Buttkiss
Dick Buttkiss's picture

Looks like a fucking double-wide, albeit with the deluxe greatroom package.

I'd sell mine for half that.

Sun, 12/08/2013 - 22:46 | 4228168 azzhatter
azzhatter's picture

My first thought was that one Malibu joint looks like a fucking mobile home with big windows

Sun, 12/08/2013 - 17:20 | 4227317 RafterManFMJ
RafterManFMJ's picture

Crash and burn
the stars explode tonight
How'd you get so desperate?
How'd you stay alive?
Help me, please, burn the sorrow from your eyes
Oh come on be alive again
Don't lay down and die

Hey, hey
You know what to do
Oh baby drive away, to Malibu

Hole, Malibu

And everybody knows that you're in trouble
Everybody knows what you've been through
From the bloody cross on top of calvary
To the beach of malibu
Everybody knows it's coming apart
Take one last look at this sacred heart
Before it blows
And everybody knows...

Everybody Knows, Leonard Cohen

Sun, 12/08/2013 - 21:22 | 4227940 ajax
ajax's picture

 

 

Looks like the Beverly Hillbillies decided their old shack was home sweet home after all...

 

Sun, 12/08/2013 - 16:54 | 4227255 wisehiney
wisehiney's picture

Better get em sold before fukushima washes up.

Sun, 12/08/2013 - 17:44 | 4227364 Freddie
Freddie's picture

I would love to go to Pelosi's vineyards in Nor Cal and piss Fukushima Iodine 131 and Cesium 137 on her vineyards.

Then salt the damn soil so nothing would grow there.

Sun, 12/08/2013 - 19:14 | 4227581 Reptil
Reptil's picture

mmmmh Pelosi's not going to be around forever. why not piss on her instead? (just a suggestion)

Sun, 12/08/2013 - 16:58 | 4227260 RafterManFMJ
RafterManFMJ's picture

Au @ 55K
Ag @ 1000

I'll be able to buy any property on that list! But I won't 'cause I'm not a narcissistic moron.

Nope, a farm or apartment building or 3, for me.

Sun, 12/08/2013 - 17:08 | 4227290 Cognitive Dissonance
Cognitive Dissonance's picture

The thing is......if PM's go up to the prices you post then RE will most likely be a lot more expensive as well.

PM's are for wealth preservation, not appreciation.

Sun, 12/08/2013 - 17:13 | 4227302 magnetic_silver...
magnetic_silver_ideas's picture

PM's are for people that want to ensure that their intrinsic value mantra stays alive in their head.

You can only make bowls and spoons with it. You can't even divide it effectively wihtout ruining the value of the bar.

Gold, while it has useful attributes, is not a panacea.

Sun, 12/08/2013 - 17:17 | 4227309 Cognitive Dissonance
Cognitive Dissonance's picture

"You can only make bowls and spoons with it."

Too funny. My nose ring is made of Gold. So there!  :)

Sun, 12/08/2013 - 19:39 | 4227659 magnetic_silver...
magnetic_silver_ideas's picture

Good for you. What a great example of intrinsic value.

Sun, 12/08/2013 - 17:32 | 4227344 RafterManFMJ
RafterManFMJ's picture

Agree CD; the winners will be those who lose the least.

Sun, 12/08/2013 - 18:24 | 4227467 grid-b-gone
grid-b-gone's picture

Hold some productive assets, have low debt, and diversify. 

The reset is in slow motion due to monetary policy. 

The expanded social safety net since the 1930's masks the soup lines. People have no visual cue to prepare. As a result, most will be less-prepared than the last time.

Unless Keynesian magic really works, digital printing will continue to the point of currency failure, over-printing being a form of counterfeiting.

We probably will see rates continue to creep up as control is lost. Then more controls or devaluation are attempted as the final stutter-step before the market cleans up the mess itself.

Sun, 12/08/2013 - 21:04 | 4227899 PT
PT's picture

Now, if only I could afford some productive assets.  Maybe I'll borrow some money ...

Mon, 12/09/2013 - 02:14 | 4228546 All Risk No Reward
All Risk No Reward's picture

If you can't afford the productive asset, become the productive asset.

Mon, 12/09/2013 - 13:08 | 4229450 PT
PT's picture

Tried that.  There's no money in it.  Should I work harder, smarter or be more innovative?

Tue, 12/17/2013 - 00:17 | 4252964 All Risk No Reward
All Risk No Reward's picture

The medium term future isn't about money, it is about the essentials of life.  Gardening, that type of thing.  I hear you though.  Individual autonomy threatens the mega corporate Titans and, as such, the individual is the main target of this Art of WAr operation to subjugate humanity.

Sun, 12/08/2013 - 16:58 | 4227261 magnetic_silver...
magnetic_silver_ideas's picture

Hey, everyone check out the new GoldFiatLeak.com site, where you can watch millions of dollars of gold exchange hands every day in realtime, using the largest decentralized value exchange network known to man.

Sun, 12/08/2013 - 16:58 | 4227263 Fuh Querada
Fuh Querada's picture

nice jugs

Sun, 12/08/2013 - 17:08 | 4227292 tocointhephrase
tocointhephrase's picture

Just a tit

Sun, 12/08/2013 - 17:01 | 4227270 Fuh Querada
Fuh Querada's picture

Sheeit, what do the utilities, insurance, property tax, housekeeping, cleaning, gardening and used diaphragm removal from the pool filters cost in these palaces on top of the mortgage payments ?

Sun, 12/08/2013 - 17:05 | 4227277 magnetic_silver...
magnetic_silver_ideas's picture

You have to have a few plantations and extortion rackets to be eligible to bid on these.

Sun, 12/08/2013 - 17:11 | 4227296 Skateboarder
Skateboarder's picture

Haha that's for the PA to take care of, silly. The master need not worry about any of that... until he does [and the property is foreclosed].

Sun, 12/08/2013 - 17:37 | 4227348 Freddie
Freddie's picture

My old house was on a street with some houses a bit smaller than the one in Boca Raton.    These places are expensive to maintain.  These people easily drop $30,000 a year in maint for pool, grass, painting, cleaning and upkeep.  Anything near the ocean will also rust out or oxidize metal fixtures outside like lights, door locks and handles.

Then you have the property taxes.  I would guess everyone of these houses is WAY over $100 K a year.  The electrical bills in Florida in the summer will run $1,000 a month easy.  I am glad I am in Montana with my rocket fire heater.   I can go outside and shoot .308 1,000 yards down the field.

Nice that Tyler's have a banner add for bigger breast cream.  Can go to a C Cup in weeks.  I heard for guys you can just smoke pot if you want Moobs and alsop THC insanity.

Sun, 12/08/2013 - 18:17 | 4227443 Skateboarder
Skateboarder's picture

lol these kinds places need at least one full-time caretaker for upkeep - 50 out of the 100K goes right there.

p.s. it's not the pot that gives you moobs - it's the box of cookies ja eat after. ;)

Sun, 12/08/2013 - 21:27 | 4227948 Freddie
Freddie's picture

+1  LOL!   Cookiees.

These places do require a full time caretaker.  I saw a few slip into foreclosure and they can get really run down and shitty fast.   You would be amazed at how fast it can happen especially if there is no A/C running in the house.

And back in the day - I used to remember these words that you probably heard more than a few times.

"You can't ride that skateboard here!"  I had a Bahne back in the those days.

Sun, 12/08/2013 - 22:21 | 4228097 Skateboarder
Skateboarder's picture

Yeah, I been to some rich places that told me that haha. I totally know how some high-end properties, especially ones with lots of gardening maintenance, go to shit without A/C and constant upkeep.

It totally makes sense to have that kind of house if you have a generational family and you own a business and employ people without being a douche, etc. I've seen some good people in fancy places pull it off alright.

Sun, 12/08/2013 - 17:48 | 4227374 wee-weed up
wee-weed up's picture

Yep, I'll bet the local politicians LOVE to tax the shit out of these big McMansions!

Sun, 12/08/2013 - 23:51 | 4228316 Kirk2NCC1701
Kirk2NCC1701's picture

I recall someone here having posted a link (a long while ago), showing which top Celebs have sold or are selling their places in L.A. area. E.g, Jim Carrey, Celine Dion.

Clearly they are/were the more level-headed type and had good financial advice.

Mon, 12/09/2013 - 00:43 | 4228399 groundedkiwi
groundedkiwi's picture

they are abandoning the Fukushima coast. early birds etc

Sun, 12/08/2013 - 17:03 | 4227272 capitallosses
capitallosses's picture

Just more smart people getting out of Kalifornication before it completely crumbles under the growing load of moronic legislation.

Sun, 12/08/2013 - 17:32 | 4227339 Atomizer
Atomizer's picture

Californication [Rest in Peace]. NYC is not far behind..

Sun, 12/08/2013 - 17:17 | 4227280 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

With the excess capacity in toilets vs bedrooms these houses all seem to have maybe they should be renting them out as public toilets. Pee like Justin Bieber for a low introductory price of only only $19.95.

Sun, 12/08/2013 - 17:26 | 4227330 Freddie
Freddie's picture

LOL!  Yeah - I never get why you need 5 bedrooms and 10 bathrooms.  Is this for all your degenerite rich friends to do coke or freebase in the bathroom at your parties.  

Mon, 12/09/2013 - 00:42 | 4228401 kareninca
kareninca's picture

The rich are different from you and me.  They are incontinent.

Sun, 12/08/2013 - 17:08 | 4227286 Peter Pan
Peter Pan's picture

Something is really wrong here. When someone is let's say $200,000 behind on a $5 million loan, that means they are behind by over 16 months if the interest rate is 3%. The real question is how many of these luxury loans are behind by 6 months.

Sun, 12/08/2013 - 17:34 | 4227345 Seasmoke
Seasmoke's picture

all of them.......Taper MBS.......NEVER !!!!!!!!!!!

Sun, 12/08/2013 - 17:39 | 4227359 Freddie
Freddie's picture

Most of them are in So Cal - so hopefully they are Hollywood or TV scumbags getting hosed.  F Hollywood and TV. Hopefully these coke head douchebags are suffering.

My local 16 or 18 Movie Plex has been empty a lot anymore - day and night.  They send out coupons. LOL!  F Hollywood because they invented and totally support Obama.  Starve the Beast.

Sun, 12/08/2013 - 19:55 | 4227695 I need Another Beer
I need Another Beer's picture

I like the way U think

Sun, 12/08/2013 - 20:33 | 4227803 squexx
squexx's picture

Why pay for gas, fight traffic, have to pay way overinflated prices on concession, then watch the movie with a bunch of noisey thug wannabe's?

I just download movies that I want to see on bittorrent and watch them at home!

The part I really like is that I'm not putting money in the pocket of one of the parasites in Sheenywood!

Sun, 12/08/2013 - 21:30 | 4227965 Freddie
Freddie's picture

+1  Bro.  Totally agree.

Mon, 12/09/2013 - 00:50 | 4228326 Kirk2NCC1701
Kirk2NCC1701's picture

Understood. But don't forget that Hollywood also supports its own creations: Reagan, Schwarzenegger. The H/wood Elite are cousins to the NY Elite. They're just doing their part, depending on which side of the coin is face up.

Which is why I don't fall for the false choices of Left vs. Right in politics or Hollywood.  All are false choices, false flags.  They're merely FOCs (Flags Of Convenience), and "Flystrips" to attract & trap "Identifiable Segments". 

When you run (create or infiltrate and take over) these Segments, you control everything.  Those who fall between the cracks are mopped up, if they cannot be redirected to one of the false Choices and cause too much grief. 

Call me Cynical, not Paranoid.   Cause I don't think that they are out to get us.  Rather, they're just out to 'use' and manage us -- like Chattel.   It's the efficient and rational (cold-blooded, dispassionate, calculated) thing to do.  What's that famous American saying?  Ah yes... "It's nothing personal, it's just 'business'.

Sun, 12/08/2013 - 18:32 | 4227484 Dr Benway
Dr Benway's picture

Reality can be suspended. The carried value of these properties were purposefully distorted until the lender could "weather" fair value. This is stated matter-of-factly in the article, but it is fraud and should be denounced as such.

Sun, 12/08/2013 - 17:08 | 4227288 Constitutional ...
Constitutional Republic's picture

Tax is for little people, said a famous American heiress/zionist.

CONgress agrees as it exempts itself from many laws which it imposes on the many, for the profit of the few.

Sun, 12/08/2013 - 17:16 | 4227306 Handful of Dust
Handful of Dust's picture

Why pay when you know you can 'just walk away' and dump the losses onto the guy down the street ... and in 2-3 years buy another McMansion with the new American method of financing.... No-Money-Down, Never-Pay-Back mortgage.

 

 

Sun, 12/08/2013 - 17:31 | 4227340 Seasmoke
Seasmoke's picture

who was that statist cocksucker who said a few years ago, that its not morally right........LOL !!!!

Sun, 12/08/2013 - 22:57 | 4228197 hidingfromhelis
hidingfromhelis's picture

Remember how the Mortgage Bankers Association strategically defaulted on their HQ building after their CEO blathered something similar?

http://dailybail.com/home/must-see-bust-mortgage-bankers-association-strategic-default.html

Sun, 12/08/2013 - 17:46 | 4227369 Caviar Emptor
Caviar Emptor's picture

Creative destruction! Now the note holder will get to bail-in depositors and bond holders. The giant credit sink hole will swallow up everybody's cash.

Fed miscalculated just how much printing was required for this pig. Guess we gonna need a bigger printing press

Sun, 12/08/2013 - 17:54 | 4227380 Trucker Glock
Trucker Glock's picture

Strategic default, bitchez. Now they can afford a bigger haus.

Sun, 12/08/2013 - 17:53 | 4227381 I am Jobe
I am Jobe's picture

Need more bling bling. Amerka's homes- Trailer Parks.. Ask KKR 

Sun, 12/08/2013 - 17:54 | 4227383 I am Jobe
I am Jobe's picture

This is fucked up

 

 

Blackstone Made Money on Credit-Default Swaps With This One Weird Trick

http://www.bloomberg.com/news/2013-12-05/blackstone-made-money-on-credit...

Sun, 12/08/2013 - 18:04 | 4227408 22winmag
22winmag's picture

Bring spray paint, sledgehammers, and Bud Light. Together we can lower the values.

Sun, 12/08/2013 - 18:07 | 4227424 QQQBall
QQQBall's picture

has anyone tested non-recourse on refi loans in Cali? 

Sun, 12/08/2013 - 18:12 | 4227433 Kasperfx
Kasperfx's picture

JUST LOOK AT THE ZILLOW ON THEM, MOST IF NOT ALL THESE HOME THE OWNERS TRIED TO GET 2 to 3 X WHAT THAY PAID FOR AND THE TAXED RATE , MAKE YOU THINK WHY NOT JUST SEEL AT A MORE REASONABLE PRICE ? THIS GUY WOULD RTAHER GO FC THEN ADMIT HIS PROPRTY WAS NOT WORTH 13 MILLION AS HE TOLD OTHERS. OR MAYBE HE TOOK A HALC AND SQUANDERED THE MONEY? 

 

http://www.zillow.com/homedetails/717-S-Ocean-Blvd-Delray-Beach-FL-33483...

Sun, 12/08/2013 - 21:41 | 4227988 Freddie
Freddie's picture

He may have done some imporvements too.   $160,000+ a year in property taxes.  Ouch!  Oceanfront.  Maintenance nightmare.   Almost anything metal outside has to be replaced almost every year.

Sun, 12/08/2013 - 23:24 | 4228259 Freddie
Freddie's picture

The one in Houston is another gem.  Probably one of the worst places for a foreclosed home due to searing heat and high humidity.  There is plenty of energy money there so someone will buy that one at a lower prices.

Sun, 12/08/2013 - 18:17 | 4227440 Dre4dwolf
Dre4dwolf's picture

Its too expensive to be rich.

The property taxes alone could wipe someone out on these properties.

Statism and banksters are the number one thing preventing 200,000,000 Americans from living like rockstars

Sun, 12/08/2013 - 18:26 | 4227470 Bunga Bunga
Bunga Bunga's picture

But but but cash buyers will soak up the foreclosures in no time.

Sun, 12/08/2013 - 19:27 | 4227634 Downtoolong
Downtoolong's picture

Investing in your own inflated ego and greed rarely works out well. Even more embarrassing is how many of these ultra-properties are owned by so-called real estate professionals. But, these examples shown are nothing compared to the uber white elephant catastrophes which only Donald Trump or some other asshole with an ego even bigger than his would ever consider buying.

By the way, does Stevie Cohen still own his 60,000 square foot playland in Connecticut?  I bet it’s a real hoot wandering the halls of that complex these days. Maybe he should write a book about how much fun it is to bowl alone in your own private indoor alley. No need to send him off to prison, they’ll probably just turn it into one some day.

 

Sun, 12/08/2013 - 20:39 | 4227811 Stuck on Zero
Stuck on Zero's picture

I wonder what percentages of these foreclosures were due to mortgage payment failures and how many were due to bankruptcies.  Really expensive properties are generally purchased for cash.  Really premier properties are also generally owned by scoundrels and ponzi schemers.  I have it from a friend at the Sheriffs office that they serve about a dozen warrants a week in a very expensive area of town hear here.

 

Sun, 12/08/2013 - 20:58 | 4227882 lasvegaspersona
lasvegaspersona's picture

Honey...we left the lights on in Malibu... Have Curtis take the Lear out and shut them off..we really should get one of those remote thingys, you know the kind that work on the iPhone...

Sun, 12/08/2013 - 21:32 | 4227971 Kreditanstalt
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Wonder if 10050 Cielo Drive is in foreclosure? 

Sun, 12/08/2013 - 23:19 | 4228240 I Write Code
I Write Code's picture

Do any of these really qualify as "ultra-luxury"?

The prices seem far too low, I suspect a lot of these are walkaways - the "buyer" took out a $20m loan during the bubble, the market crashed, and now they'd rather walk away from even a $4m down than sell for $10m.  And if they got the property with zero down, well, awaaay we go!

Remember, something like half the "buyers" at the end of 2007 and thereabouts never made even the first payment on their mortgages because THEY NEVER INTENDED TO.

Mon, 12/09/2013 - 05:31 | 4228697 jmcadg
jmcadg's picture

WTF 8 Bedrooms, 13 Bathrooms. Why?

Mon, 12/09/2013 - 05:34 | 4228700 jmcadg
jmcadg's picture

Whoever buys a $5+ miliion house with a mortgage is not rich, just a wannabe. Retards.

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