Million Dollar Hamptons Mansion Caught in the Foreclosure Net

This summer a million-dollar Hamptons mansion was caught in the foreclosure net. This mansion is an 18,000 square foot property in Bridgehampton. Foreclosure has reduced its value from $27 million to a mere $19.5 million!

A company called Burns Development constructed the mansion on 4 sprawling acres. It has hosted top shows like the Hamptons Designer Showhouse in 2006. It is an annul show in which the latest trends in house designing and home decoration are highlighted. The mansion boasts of a pool, an elevator than can accommodate five persons and a unit known as ‘a flower –cutting room.’ As soon as the exhibition was over, the mansion went onto the market but ultimately became foreclosed towards the end of the year for  its owner lagging behind on a mortgage worth $4.4 million.

The Corcoran Group of New York holds the mortgage for this mansion with 8 bedrooms and 9 and ½ bathrooms. Corcoran representatives were not available to comment. Jacob Benaroya is the president and manager of the Biltmore Capital Group based in New York. He commented that, as of late, the tentacles of foreclosure have caught many million-dollar-plus houses but not one as grand and costly as the Hamptons Mansion. Biltmore has no direct dealings with the mansion in question but the firm deals with other properties in the locality. He added that these special houses pose special problems when it comes to selling.

According to the New York Post, during the first quarter of 2008 banks initiated foreclosures against a record number of borrowers (12) in East Hampton and South Hampton. Among the other Hampton high-end houses is Janice Becker’s multi-million dollar estate on Wyandanch Lane. Her house is being foreclosed upon. Another giant in the advertising field, Ransel Potter, is defaulting his $1.8 million mortgage on his unit. Previously it had been thought that the grime of foreclosures could never stain these exclusive properties, but it seems like they can. It proves that the wealthy too can be stupid while managing their wealth.

There is a feeling of vicarious pleasure among many who think that the rich in the Hamptons deserves this foreclosure stigma. They walked in and made proud mansions emerge from fertile farm lands by trading in  ridiculous funds by raising parties and nothing more. The hope is that soon another wannabe will take this as an opportunity and snap it up for a song.