1038 Lake sells at foreclosure auction for $3 million

Clown College

A lawyer friend of mine sends this:

Chris

Auction was held  at 12:00 in the rain.  There were four bidders. The winning bid was $3,000,000.00 by Patriot National Bank, which held the second and third mortgages.
Astoria Federal held the first mortgage and bid the amount of the debt of about $1,250,000.
Then another bidder bid and Patriot bid until he backed off and Patriot was declared the winner.

Access to premises was denied , not even in the driveway. The gates to the property were closed and the auction was held in the street, with two police officers monitoring things.

The property had a court appraisal of $5.1m and it will be interesting to see if the court will approve the sale.

I’ve been reporting on Steven Braverman’s woes for a long time. He owed $6.5 million on this dreadful house so it’s no wonder he couldn’t sell it before today’s foreclosure auction made that moot. I don’t usually cheer another’s misfortune so I won’t here, but if I was ever tempted to say a man got what he deserved ….

Final stage for Braverman will be the foreclosure on his last remaining property, 44 Close Road. Unlike his Lake Avenue monstrosity this was very well built (Tommy Hilfiger either had it built or bought it new, I forget which, but never lived here) and finished with taste. But that won’t be enough to achieve a sales price large enough to pay off the massive debt Braverman has saddled this place with, so look for the pending foreclosure to run its course to conclusion.

By the way, Patriot Bank now owns Lake free and clear of all the junior encumbrances, so you could probably buy this from them for even less that they paid today. Not my cup of tea but it is a lot of house. Trying buying something half its size in Riverside for $2.75 million – apples to oranges, I know but still ….

UPDATE: Hah! Duke of Deception, you missed your chance! Looking back at old comments, I see the Duke and I had this exchange in 2009:

7 Comments

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7 responses to “1038 Lake sells at foreclosure auction for $3 million

  1. Anonymous

    As long as I could qualify for medical marijuana, I’d be very happy here for a lifetime: a lot of house and land for < $3. And that head-tripping decor? Priceless.

  2. AJ

    Your distaste for this beautiful property makes me think you’re some tyro, wannabe real estate tycoon. All I can say to someone who can’t see the multi-million dollar profit potential in this soon to be buff gem in the rough is GET AWAY FROM ME LOSER!

    Get away from me loser @ 1:28:

    And after all these years Tom Vu is in the News today. Apparently customers are not happy with what they received for their $16,000 for Tom’s one week seminar: ‘Thousands Of People Have Paid Big Money To The Orlando Investment Guru In Hopes Of Striking It Rich. Now, Vu Is Paying The Price Of Success As He Fends Off Court Fights And A Criminal Investigation.’

    Here’s the link to page one of this eight page article in the Orlando Sentinel: http://articles.orlandosentinel.com/1992-05-24/news/9205221230_1_tom-vu-god-attorney-general

  3. Anon

    Why does it take so long to go from knowing there’s a financial problem (2009) to hearing there is a foreclosure notice (May 2011) to actual auction yesterday? Do you presume Braverman was trying to come up with money that whole time? And how much time is one legally entitled to have to get money?

  4. Anonymous

    Foreclosure auctions are usually a waste of time. They typically sell to the first lien holder up to the value of that mortgage as happened here. If someone would have bid 3.5, Patriot would have bid 3.6mm. They just want to control the ultimate sale. They will now list it on MLS for 4.5mm.

  5. Anonymous

    Without reading back through those threads, didn’t the Duke’s wife immediately put a kibosh on his plans? 😆

    44 Close looks like a nice, if huge, house. It’s hard to believe that it’s 10 years old now and nobody has ever lived in it. If the taxes are up-to-date then that’s .5M paid just in taxes and God only knows how much has been spent on the upkeep. I suppose they got greedy when the house across the street (on the pond) sold for 14.5M in 2007?

    Who barred access to the property at the auction, the Bravermans? Are they still in residence?

    • 44 Close is indeed a very nice house and should have sold years ago, but Braverman had it cross-collateralized with Lake on a loan from, I think, Deutsche Bank, and there seems to be no easy way to untangle the mess. Or at least there wasn’t. With Lake gone, it’s probably time for Deutsche to accept reality – they must have moved this non-performing loan over to the liability side of the ledger a long time ago – and dump it. Yeah, ten years vacant is a long time for a house to sit. Last time I was in it it still looked beautiful so someone’s been maintaining it, but no house improves while empty.

  6. anonymous

    so how much price depreciation does 44 close get for being ten years old and unlived in? I’d devalue it more sitting empty than I would having someone in it to monitor and upgrade things that go wrong. Ten year old appliances, even unused, are practically antiques. Swimming pool systems have changed.

    Sotheby’s listing is as a rental only at $29k/per. That is to say it isn’t for sale because of the lien?
    http://www.sothebyshomes.com/greenwich/rental/0066183?utm_campaign=OLDP-Trulia&utm_source=trulia&utm_medium=oldp&utm_content=listing