Ohio homeowners who purchased property before the real estate market crash and downturn in the economy may fault themselves for not having seen the troubles coming. However, even knowledgeable experts have become victims as well. Many real estate professionals and real estate investors purchased homes with hopes of big profits, and now are unable to sell these underwater homes.
One such man is a real estate agent who filed for Chapter 7 bankruptcy. He had been the top-selling agent for his brokerage firm back before the housing crash in 2004. Around that time, he, like many other real estate investors, saw the potential for developing land.
He set his sights on a very large piece of property on which he built a multi-million dollar estate. He purchased the land in 2003 for $3.2 million in order to build an ornate mansion. And that he did. The mansion includes more than 16,000 square foot of living space, a 17-car garage, a vineyard and wine cave. In fact, the property had once been valued at $87 million even in its unfinished state.
The property was only approximately 90 percent complete when it was originally listed for sale for $57 million. The property was then reduced to $37 million, but with no takers.
Now the owner has filed for Chapter 7 bankruptcy protection, and this property is being sold in a bankruptcy auction sale at the direction of a bankruptcy trustee.
This story is a good reminder that no one should judge themselves for the reality of the current state of the real estate market. Instead, homeowners should consider all of their options, including filing for bankruptcy, so that they can move on from the past with a clean slate.
Source: Forbes, "An $87 Million Newport Coast Mansion Heads To Bankruptcy Auction," Morgan Brennan, April 14, 2012