It's not how much money you have but how you manage it. That may be the big lesson to draw from a reported foreclosure auction coming up on former billionaire hedge-fund manager Phil Falcone's enormous East 67th Street townhouse and lavish Hamptons estate. Another media story puts the listing prices of the two properties at $39 million and $28 million, well south of the roughly $74 million the mortgage lender alleges Falcone owes on the foreclosed properties.
When Money Is No Worry
According to information shared in the first report, Falcone should be having no problem paying his mortgages on the two lavish properties. The story, for instance, indicates Falcone's 2019 sale for a record $77 million of another lavish home formerly owned by Penthouse publisher Bob Guccione. The story also reports Falcone's $1.7 billion payday betting against the housing market around its 2008 crash. Another media report indicates Falcone still had a net worth of $1 billion as late as 2014.
Yet, the first report also suggests an alleged source of Falcone's foreclosure problem. The report has Falcone blaming the mortgage lender for not eliminating the loan. But the report also indicates some extraordinary spending allegedly contributing to the foreclosure problem. Falcone may have sold a $77 million home recently, but the report indicates millions spent renovating and expanding that property, which also had an extraordinarily high $49 million price tag when Falcone first purchased it.
How to Beat a Foreclosure
If, as the story of former billionaire Falcone's impending foreclosure suggests, vast sums of money are not enough to avoid losing one's home, then how does one avoid foreclosure? A big first step is getting into the property at the right price and on the right terms with your lender. An equally important second step is managing your investment in the property wisely, maintaining the property but not overbuilding it in ways that exhaust your equity cushion. And a third step is to consult a foreclosure expert as early as possible when foreclosure appears a threat.
If you face foreclosure or simply want to ensure that your legal matters are in order to forestall a potential future foreclosure, then retain and consult premier real-estate lawyer Melvin Monachan. Melvin Monachan helps residential and commercial clients in New York and New Jersey avoid foreclosure, while also assisting with closings on real estate transactions. Melvin Monachan's sound advice and aggressive representation help preserve, secure, and sell your real properties. Call (347) 389-1682 or go online for an appointment at the industry-focused, relationship-driven Law Offices of Melvin Monachan, PLLC.