Foreclosures in Paradise
October 3rd, 2008
Foreclosures know no differences – its tentacles are now reaching into corners of paradise. Some the jazzy addresses in the Hamptons are facing the cruel face of foreclosure. The occupants cannot continue with the mortgages and foreclosures seem inevitable.
From January to March 2008 the lenders, mostly the banks have launched primary foreclosure actions that are technically known as lis pendens proceedings. 120 borrowers in East Hampton and South Hampton towns have been served notices. Of these borrowers 20% live in houses that are valued at more than $1 million according to county records. Each week the numbers are increasing.
John Brady is a broker from East Hampton. He comments that previously this type of foreclosure problem was non-existent. Once in a while they surfaced but nobody gave undue attention to what was an aberration rather than the rule. Today each week a new foreclosure proceeding is started.
Out of a total ten houses in East End one is a jumbo-sized mansion. It has been foreclosed at the start of the year. Over 800 house owners in East End, comprising of a mixture of the rich and middle class from Riverhead and stretching up to Montauk, have been notified by credit monitors for late payments. In the higher category are people dealing with law, finance and speculation. Those who had over reached themselves by opting for second houses are now in the foreclosure soup.
Some of the high rolling names are that of socialite Janice Baker, advertising king Ransel Potter, realtor John Conroy, UBS executive Marc Warren, investor Roger Thanhauser among many others who are saddled with mortgages worth millions of dollars. The media tried to contact those in lis pendens but none were available.
Chris Como, deputy clerk of Suffolk County said that most of the high-ended foreclosure victims are opting for short sales to get out of trouble. The banks did not start proceedings until the borrower was neck high in debt. Susan Breitenbach is a broker from Corcoran. She thinks that most of the rich victims are young Wall Streeters who had come trophy hunting for swank properties are now underwater. These people are habituated to success. Foreclosures are causing grave embarrassment. Contradicting her broker Lori Barbaira opines that the high-end category of houses continues to remain in a special zone and has not been gnawed into by foreclosures. The people in this paradise have a cushion to fall back on. The entire picture will not be clear until September draws to an end.
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- Bank of America is a Lagging Behind in Loan Modifications to Prevent Foreclosures
- The Aftermath of the Housing Boom is Followed by Foreclosure Doom in Homestead
- Lenders Being Legally Challenged for Activating Predatory Lending
- Foreclosures Have Made Life for CEO’s Expensive and Fraught With Fear
- With Foreclosures and Unemployment Continuing it is Doubtful if Recession is Over
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