Foreclosures rates have been trending downward since the peak of the financial crisis and housing market meltdown of 2007-2008.
But foreclosure sales are still hitting a range of neighborhoods across the United States, even the richest areas.
A home in New York’s Hamptons on Further Lane, where comedian Jerry Seinfeld and hedge-fund manager Steven A. Cohen own estates, is going up for auction in what is believed to be the area’s biggest ever foreclosure sale.
Ironically, the home is near a mansion that recently sold for $147 million, a record price for a U.S. residence,
At $10.5 million, 80 Further Lane would be the most expensive residential foreclosure ever in the Hamptons, says Kristopher Pilles, a broker at East End Luxury Ltd.
“To think that a house on Further Lane is being foreclosed on — it’s the most beautiful, coveted street in the Hamptons, period,” said Pilles.
Previous foreclosures in the Hamptons have been for less than $5 million, according to Pilles. He said he has clients who may bid on the property, including hedge funds. Offers may start lower than the amount owed.
The 8,100-square-foot (750-square-meter) home was built in 2000 and has eight bedrooms and five full bathrooms, according to the East Hampton assessor’s office. It features eight fireplaces and a 1,300-square-foot pool.
“I’m pretty sure this property will sell in a heartbeat,” Pilles said. “There will be multiple bidders lined up.”