A Short-Sale Dream Turned Nightmare Take Two And An Artist’s PleaJanuary 16, 2014
Purchased for $525,000 in 2003 and refinanced in 2007 with a $700,000 loan, the one-bedroom cottage at 3066 Market Street was sold short for $485,000 in 2011, listed as a “terrific opportunity for a contractor or very savy [sic] buyer who wants the perfect opportunity to create their new dream home” at the time.
With permits to expand up and out and plans to turn the cottage into a four-bedroom home with a new garage, foundation, and third floor, construction on the project commenced in late 2011. A loan for $675,000 to finance the project was secured in early 2012, to which a second for $231,000 was added in January of 2013.
Within three months of securing the second the first mortgage was in foreclosure. Construction on the project then stalled and an unknown artist painted a plea:
Yesterday, 3066 Market Street sold for $951,000 in cash on the courthouse steps having been bid up from an opening at $736,950.42 as four parties competed according to a plugged-in tipster.
We’ll keep you posted and let you know if the winning bidder is more “savy” than the last. Regardless, construction should soon re-commence and “us” should be pleased, so pass it along.
Comments from Plugged-In Readers
Some quick flips, aren’t.
I feel sorry for the neighbors who lived with all this uncertainty for all these years and now they will be in the whirlwind of construction assuming that the permits are still good.
Must have been some scene in the courtroom yesterday. Very high drama plus.
Further proof of the unaffordability of the City…and why do people feel they need four bedrooms? It use to be three was more than enough to live in the City for “average” people in these non-Pac Heights neighborhoods.
Cutesy art about gnarly choices. Gnarly trumps cutesy every time.
So, noe mom, you feel bad for the neighbors because instead of living next to a half-finished construction site, with graffiti on it, a beautiful new home will rise and a family will move in?
Foreclosure auctions are held on the “courthouse steps” (or in a parking lot), not in a courtroom. Not too glamorous. Most foreclosures are postponed, and bidding is a pretty tedious event. Everyone stands around for a couple of hours… when an auction finally gets going, there’s a bunch of low-ball bids, then people sort of drift off and stop bidding and then the property sells to the person who can stay awake the longest. It just takes a couple of mintues and it’s all very anticlimactic.
Actually it is a pretty well controled chaos at the sales. They are held at City Hall on the front steps thus the saying “sold on the courthouse steps”
Most of the criers(the person who cries out the sale) are pretty good at setting the bidding limits and prequalifying everyone who is there to bid.
I have seen the bidding only go horribly bad a few times.
Its mostly the lookie loo’s who keep asking questions and delaying the sale.
This property postponed a good 20 times or so since the posted date.
Also it looks like the owner wanted to get back some money out of the property pulled the second and did a cash out and dash.
No, Mr. Flipper, I feel sorry for the neighbors because they lived next door to a mess of a building for years and the uncertainty of when the work would be done only to be ultimately dealing with the work after a long, very long drawn out process.
It is like having your wisdom teeth pulled over three days, not just an hour and a half.
Ironic, because one of the primary causes of construction delays is normally neighbors’ interference in the approvals process! A self-inflicted wound, in most cases.
Some of you are close, some way off. Here’s the real story:
Savvy, before I go through about 73 documents do you care to summarize in one or two sentences?
Avoid using your retirement accounts to lend on first or second mortgages on speculative flip projects(?)
Yes, a lot to read. Try just reading the complaint, the initial document, accessible at:
Maven Investments purchased this property on the steps. Also recently acquired the partially completed project at 948 hampshire and developed/sold the homes at 77 Anderson and 1687 Alabama, among dozens of other properties in the past few years. Jim Hurley at Vanguard will have this back on the market by the end of the year.
Maven ie Craig Lipton convicted for consiracy to rig bids at foreclosure auctions?
Along with 100 other investors in the state. Does not seem to have slowed him down
“along with 100 other investors” ….I guess any felon could make that claim oh sure I was arrested for selling crack… but so were 1.5 million others…It hasn’t slowed me down !
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