May 27, 2009
Another District Seven Mansion Heads For Foreclosure (2151 Green)
The tip we received last month:
2151 Green...is going into foreclosure this summer…I'm not sure I'd bring it up until something official is announced, but this info did come straight from the owner.
And while we didn’t bring it up before, today a plugged-in reader did:
I think it's safe to say now that [2151 Green Street] is going into foreclosure. The owner is back in Iran and that's all she wrote!
A notice of default (NOD) has been filed on the property. And the fate of the proposed 2157 Green Street on the adjoining empty lot? Likely the same.
∙ If $550,000 Were A Rounding Error, Would $2,000,000 Be As Well? [SocketSite]
∙ But Hey, $550,000 Is Simply A Rounding Error To A Proper Industrialist [SocketSite]
∙ The Scoop On 2157 Green Street (Could You See The Foreshadowing?) [SocketSite]
First Published: May 27, 2009 4:15 PM
Comments from "Plugged In" Readers
I just revisited the other threads on these places and there are some pretty funny comments. This really makes for an interesting story. So now we have 2 REO's in D7, including the place on Jackson.
Surely the lot has got to have value around $2M? Heck, I'd buy it and park a double wide trailer home there. See how the Cow Hollow association would like that one. :-)
Posted by: eddy at May 27, 2009 3:41 PM
So that... that...proposed monstrosity may never be built?
Such an outcome from the economic downturn is almost worth the trillion dollars.
Posted by: kthnxybe at May 27, 2009 4:24 PM
Sounds like somebody simply walked, and left the country . (And we don't know the backstory.) Surely there have been other REOs in D7 over the past five or six years. Whether they've been talked about it on blogs or not I cannot say. I'd be surprised if there weren't. Yeah, folks have money there. But yeah, folks can lose money over there too.
Posted by: anonn at May 27, 2009 4:35 PM
Here is another one from Propertyshark -- 2799 Pacific. Looks like it has some fun story behind it. Looks from the tax records like it was bought for about $6 million but there is an $11.3 million mortgage.
Sidebar: I went to college with one owner's sister (both sisters ran cross-country), and also a ridiculously cute distance runner who is married to the other owner's brother. I used to go running with them both -- they killed me. I wonder what the heck is going on.
Posted by: Trip at May 27, 2009 4:42 PM
You can't run from a resetting mortgage, Trip.
Posted by: tipster at May 27, 2009 4:48 PM
The 2799 Pacific situation is fairly stunning. It looks like the house went on the block today at 2:00 PM? Not a foreclosure expert here, but what does this mean exactly? This is across the street from 2500 Divis and is a superior home on a 2x, or 3x lot. From what I understand it's completely refinished inside.
Posted by: eddy at May 27, 2009 5:00 PM
I've recently seen an 8-figure loan in Piedmont (in Oakland) secured by a 7-figure house. A little googling indicated that the owner of the house also owned and ran a vineyard.
I assumed that the owner pledged his house as part of a large business loan. Same situation may apply.
Posted by: Debtpocalypse at May 27, 2009 5:03 PM
>Surely there have been other REOs in D7 over the past five or six years.
Doubtful since when property values are rising the non-bank owner can get some money back by selling the place rather then just walking away. Perhaps there were some that were sold as part of bankruptcy proceedings but generally when the real estate market is performing as "well" as it did prior to a couple years ago, plain old vanilla mail the keys to the bank foreclosures are going to be rare.
Posted by: Rillion at May 27, 2009 5:05 PM
2799 = Landmark 207
Posted by: eddy at May 27, 2009 5:06 PM
There are a ton of very expensive properties in Orange County which have loans which exceed their current value by MILLIONS. There was a blog post discussing this in some detail a month or two ago. Can anyone say "cash-out refi's"? That's what's going on, and when the music stopped ... they just took their cashed-out millions and walked away.
So what some two-bit flipper in Bayview was doing (at a "profit" of $200k), these people were doing for a profit of, say, $5M. Personally, I'd gladly, nay, I'd be ecstatic to trade my good credit rating for $5 mil in cold hard cash, secreted away safely overseas. And the beauty of it is -- no tax is owed! Its a loan!! Pure genius if you ask me. Definitely beats working for Google ...
Posted by: Jimmy (No Longer Bitter) at May 27, 2009 5:27 PM
You know things are bad when the ridiculously cute begin to suffer.
Posted by: Stu at May 27, 2009 6:13 PM
I wish someone would show the rest of hard working stiffs how to do this....
Posted by: Jim at May 27, 2009 6:53 PM
keep us posted on 2799 Pacific. I see nothing yet
Posted by: kurt7 at May 27, 2009 7:22 PM
Jimmy (No Longer Bitter): "Personally, I'd gladly, nay, I'd be ecstatic to trade my good credit rating for $5 mil in cold hard cash, secreted away safely overseas."
Boy, you're easy to please.... $5MM doesn't last long these days, even with a recession. If you're easy to please then you can be my boyfriend. :)
Posted by: StockBoySF at May 27, 2009 7:58 PM
Uh, no thanks. Not even for 5 mil...
Posted by: Jimmy (No Longer Bitter) at May 27, 2009 8:21 PM
The final leg of the bear market in California real estate is dead ahead. While it was going to happen anyway, the debacle that is now unfolding in the interest rate complex will drop a neutron bomb, on any nascent recovery.
What's next is Prime. The bottom end has taken most of the punishment due. Much of it sits well within the conforming mortgage envelope. But everything in California above, say 550K is going to be pulled down one more time. It's possible that this might have not happened, without the bloodbath in mortgage rates. Possible.
What's fascinating is that the failure of quantitative easing was so easy to predict.
Posted by: SurveyKid at May 27, 2009 8:39 PM
The sales, resales and refinancing on these 2 properties read like a novel
Posted by: kurt7 at May 27, 2009 9:32 PM
An opportunity for Zack|deVito architects?
Posted by: flaneur at May 27, 2009 10:10 PM
2799 Pacific is a great house. I visited the then owner about 15 years ago. She was the elderly daughter of a well known M.D., who has completely restored it in fine period Victorian taste. Does anyone know what has happened since?
Posted by: Conifer at May 28, 2009 12:35 AM
screw the butt-ugly SF trophy architecture . . . how about that Mitsubishi! Don't make 'em like that anymore!
Posted by: Troy at May 28, 2009 1:19 AM
I went to a party at this house not to long ago. We had to take an old school elevator just to get to the living room. The 50 something Iranian owner was dating the white, barley 20 year old Barbie doll my girlfriend worked with. The house was beautifully refurnished and the views were stunning. Everyone at the party couldn't stop talking about how the owner was a great developer who was going to make so much money off the house and the lot next door. My girlfriend would also tell me how he would fly him and his girlfriend in his private plane to Harris Ranch just to have dinner.
Being Iranian myself, I highly doubt she went over with him unless of course she really was a dumb blonde. The going interest rate in Iran last time I checked was 18% of something like that so I'm sure the owner is living the great life over there now. But the catch is you have to live in Iran.
Posted by: BatMan at May 28, 2009 8:04 AM
"You can't run from a resetting mortgage"
But you can walk away from one! Looks like we may see ever more doing the same, out of necessity (looks like mortgage interest rates are ticking up a bit too):
Posted by: Trip at May 28, 2009 8:10 AM
What's up with the pic? Somebody parked their car right in front of the garage. I'd go ballistic if I wouldn't get out b/c some idiot blocked me in.
Posted by: RipTheJacker at May 28, 2009 8:19 AM
Usually it's the owner who parks an extra car there. SFites aren't shy about calling the tow truck.
Posted by: diemos at May 28, 2009 8:30 AM
Thank goodness the greedy jerk lost on this one. The side garden is the only thing making the original house special. Destroy that (especially with the horrible McMansion pictured!) and you now have two pieces of junk wher eone really nice house could have been.
Posted by: Emma at May 28, 2009 12:37 PM
Should really build on the new lot and take the current structure down!
Posted by: eddy at May 28, 2009 1:01 PM
So that... that...proposed monstrosity may never be built?
I don't know that I'd say it was a monstrosity, but I would lose that covered entrance. Makes the thing look like that Escher print with all the stairways...
Posted by: BobN at May 28, 2009 1:02 PM
I don't think the house is bad at all. I don't like the fact that it is so "high".... lots of steps up and reaches towards the sky.... Oh, and I'm not too crazy about the puke-ua trim (which can be changed to something more palatable). But I really do like the wood detailing inside, the high ceilings and the garden.
Posted by: StockBoySF at May 28, 2009 6:17 PM
rumor is the FBI is after him for fraud on some Montana condo conversion project... apparently Barbie may move to Iran to avoid prosecution too and to be with her love.... true american dream for the owner... he's probably at least 55, and not in great shape, she's probably 24 or 25 now and a hottie. or is that the LA dream?
Posted by: hangemhi at May 29, 2009 9:12 AM
"or is that the LA dream?"
Indeed. That is why they call it "Tehrangeles"
Posted by: ugh at May 29, 2009 9:18 AM
Expired Listing. Withdrawn from Market.
Posted by: eddy at July 1, 2009 8:32 AM
nevermind: back on market @ $6,900,000
Posted by: eddy at July 1, 2009 11:02 PM
Back; and Rent to Own considered! How nice of them. Regardless, seems the owner is still in command of this thing for now.
Posted by: eddy at July 1, 2009 11:04 PM
Looks like this was sold at the foreclosure auction 10/15/2009. Starting bid was reduced to $3,066,000, and it was sold for $1 over.
Posted by: whatever at October 20, 2009 5:59 PM
"It'd be nice if the negativity nabobs would at least wait for an approprate thread, one showing a loss instead of a big gain, to talk their usual brand of Socketsite CW negativity."
Ok, how about this thread? Can we indulge our negativity here?
Posted by: diemos at October 20, 2009 9:12 PM