Wednesday, July 23, 2008
The Foreclosure Flu Epidemic is Merciless to Celebrities and Regular Folk Alike
Thanks to the uncertain nature of the real estate market, your everyday, average person seems to be having a lot more in common with celebrities than you'd imagine - and you can sum it up in one word: Foreclosure.
Celebrities after celebrities are making the news lately in a way you might not expect. Andre Agassi, Stephy Graff, Ed McMahan, Deepok Chopra, Pacman Jones … and the list goes on. Guess what folks? We're all in this mess together. It doesn’t matter if you’re a Wimbledon Champion or have a direct link to Gods ear - the Foreclosure Flu epidemic is merciless.
Respected and loved Las Vegas tennis gurus Andre Agassi and Graff's Idaho resort project, for instance, just "double faulted" as construction on his Tamarack project has basically stopped while the developers have filed for bankruptcy protection.
It's also rumored that Deepok Chopra lost his Maui shack in foreclosure. 50 Cents ‘lost’ his house to a ‘fire-sale’ type of foreclosure and national icon Ed McMahon's foreclosure problems keep mounting and mounting.
How about Latrell Sprewell, who once complained that his multi-million dollar salary wasn't enough to put food on the table for his family? He recently had his Milwaukee area home foreclosed after owing $320,284 - the home will be sold by the Sheriff's Department at auction next week. Not to mention his yacht has already been repossessed and he owes more than $70,000 to the IRS in back taxes.
Jose Canseco also had his multimillion dollar home foreclosed upon when he walked away from his $2.5 million, 7,300-square-foot home in suburban Encino because "it didn't make sense to continue making payments". Wow - something doesn't make sense to Jose Canseco!
Also, let's not forget how foreclosure is tackling Adam "Pacman" Jones, as he's defaulted on his mortgage with U.S. Bank where his home and 30 acres, located in a Nashville suburb will be sold June 27 on the steps of the County Courthouse. (let's hope he stays as far from the Las Vegas high rise condo market as possible).
Actor Michael Madsen needs $9.95 million fast to keep his luxury Malibu property, He's looking for an "expedient sale necessary" to most likely avoid losing the home to the bank.
And can we even begin to understand the mess Evander Holyfield has gotten himself into? His Atlanta estate is under foreclosure, he's defaulting on a number of loans already including a $10 million dollar bank loan as well as a $550,000 landscape loan, AND he's behind in child support payments.
Our Las Vegas foreclosures, both high rise condo and others, are about to grow as the thousands of short sales become foreclosures soon. But it's all not bad news.
I spent the day with Shari Sanderson, a Realtor® with Award Realty and was in shock (in a good way) with what I witnessed. While the majority of Realtors® are starving, she is actually "playing in the market".
The day I was with her, she opened two more escrows and wrote three offers - and the offers where so low-balled I thought…no way. Her client base is huge and her cell phone is literally off the hook as her assistants follow her around in an environment of ‘Show Me the Money’ high-energy excitement. One high-rise foreclosure that originally sold for around $700k she lowballed under $300k and it was accepted! I interviewed her throughout the day and asked her opinion about a few concerns:
Celebrities after celebrities are making the news lately in a way you might not expect. Andre Agassi, Stephy Graff, Ed McMahan, Deepok Chopra, Pacman Jones … and the list goes on. Guess what folks? We're all in this mess together. It doesn’t matter if you’re a Wimbledon Champion or have a direct link to Gods ear - the Foreclosure Flu epidemic is merciless.
Respected and loved Las Vegas tennis gurus Andre Agassi and Graff's Idaho resort project, for instance, just "double faulted" as construction on his Tamarack project has basically stopped while the developers have filed for bankruptcy protection.
It's also rumored that Deepok Chopra lost his Maui shack in foreclosure. 50 Cents ‘lost’ his house to a ‘fire-sale’ type of foreclosure and national icon Ed McMahon's foreclosure problems keep mounting and mounting.
How about Latrell Sprewell, who once complained that his multi-million dollar salary wasn't enough to put food on the table for his family? He recently had his Milwaukee area home foreclosed after owing $320,284 - the home will be sold by the Sheriff's Department at auction next week. Not to mention his yacht has already been repossessed and he owes more than $70,000 to the IRS in back taxes.
Jose Canseco also had his multimillion dollar home foreclosed upon when he walked away from his $2.5 million, 7,300-square-foot home in suburban Encino because "it didn't make sense to continue making payments". Wow - something doesn't make sense to Jose Canseco!
Also, let's not forget how foreclosure is tackling Adam "Pacman" Jones, as he's defaulted on his mortgage with U.S. Bank where his home and 30 acres, located in a Nashville suburb will be sold June 27 on the steps of the County Courthouse. (let's hope he stays as far from the Las Vegas high rise condo market as possible).
Actor Michael Madsen needs $9.95 million fast to keep his luxury Malibu property, He's looking for an "expedient sale necessary" to most likely avoid losing the home to the bank.
And can we even begin to understand the mess Evander Holyfield has gotten himself into? His Atlanta estate is under foreclosure, he's defaulting on a number of loans already including a $10 million dollar bank loan as well as a $550,000 landscape loan, AND he's behind in child support payments.
Our Las Vegas foreclosures, both high rise condo and others, are about to grow as the thousands of short sales become foreclosures soon. But it's all not bad news.
I spent the day with Shari Sanderson, a Realtor® with Award Realty and was in shock (in a good way) with what I witnessed. While the majority of Realtors® are starving, she is actually "playing in the market".
The day I was with her, she opened two more escrows and wrote three offers - and the offers where so low-balled I thought…no way. Her client base is huge and her cell phone is literally off the hook as her assistants follow her around in an environment of ‘Show Me the Money’ high-energy excitement. One high-rise foreclosure that originally sold for around $700k she lowballed under $300k and it was accepted! I interviewed her throughout the day and asked her opinion about a few concerns:
- What do you think of the foreclosure issue with Tamarack and Agassi?
First of all, ski resorts only come around, what…once every twenty years?! Last one I remember (and was involved with) was Telluride. It’s a luxury purchase - not a flip! I am a huge Agassi Family fan and was at the F/F opening. They are all heart and I am sure they are just as heartbroken over this as anyone who is experiencing the current economic shift. (She taps one of her assistants and says, “Get me a list of any distress sales in Tamarack.”)
- What do you think of all of the celebrities hit by foreclosures?
No one is immune from what I am calling "the Foreclosure Flu". Most people will surely recover. We all need to help take care of one another and be supportive. A lot of people are angry and blame the media for the gloom and doom. I get extrememly irritated when I see reporters pull factoids from 2004 and throw it into the mix to sensationalize. BUT, the media has a responsibility to report the truth and we are in a gloom and doom position. Whether I walk into a 6,000 sf home selling for under $500k and the house is trashed or a small condo some baby boomer mortgaged their home for and lost both, I can feel the anger and frustration.
At the same time, I love finding deals. I am a personal shopper of Vegas real estate and this is LAST CALL VEGAS - and I am pulling aside all of the good deals for my clients. I get a kick out of finding my friends a property at $80 a foot. Friends and clients started calling me in February 2008 asking my opinion and I suggested them waiting until the end of summer. However, I started cherry-picking some great price points for them the past month because I just don’t want anyone to miss out.
- What is your take on the economy rebounding?
Everything in life is cyclical - love, relationships, real estate. We all know what goes up, must come down. If you have patience and wait long enough, the cycle starts all over again. Most people choose to ignore the real estate cycle and the fact we are in an election year... partied hard with irrational exuberance… shopped till we dropped… etc. - now we have to suffer the consequences. This is the time to buy - anything! I just bought a new car and so did my daughter, from Bill Collins at Desert BMW. Luxury items are less expensive.
- Where do you get all of these clients, your phone rings constantly?
It’s all referrals. (she smiles).
