The real estate slump that followed the recession has been cruel to homeowners. But it is not just the poor and middle classes that have been affected. The ultra-rich have also suffered the rage of a struggling economy. With cash flow becoming restricted, many luxury homes went into foreclosure. Here is a list of six foreclosed homes for sale that appear to be great bargain buys in the luxury sector.
1. La Reve Manse, Atlanta, GA (Cumming, GA)
Spread over 72 acres, this 47,000-square-foot mansion cost $50 million to complete back in 2006. The estate includes a golf course, two pools and horse stables, as well as a four-acre lake. The mansion houses 82 rooms, 14 and a half baths, seven bedrooms, four garages and two elevators. There is also a 27-seat movie theatre, a bowling alley, a wet bar and a 50’s diner.
Hubert (a mortgage broker) and Norma Humphrey owned the luxury property. Foreclosed homes rarely command a good price, and after La Reve (picture above) was foreclosed, its price dipped to $28 million in 2010. Currently it is priced at $16,750,000
2. Albemarle Estate (Charlottesville, VA)
Even Sotheby’s has called Patricia Kluge’s $100 million Albemarle House “one of the most important residences created in America since the ‘Golden Age’.” In 2010, Kluge auctioned off $13.5 million of her art, antiques and jewelry collection. Despite that, Kluge defaulted on $23 million worth of loans. Her estate was foreclosed by January this year.
Albemarle Estate is a magnificent as far as luxury homes go. You can’t help admiring the Georgian architecture. Plus, the 300-acre estate is home to a helipad, a Roman statue gallery, a rose garden and a gun room. The property is currently priced at $16 million.
3. Miami Penthouse (Miami, FL)
Celebrity real estate broker Carlos Justo was known for his extravagant ways. From spending on $1,000 lunches to transporting clients via helicopter, he has done it all. However, the real estate slump bankrupted him and he lost a dozen homes, including a recently foreclosed two-storey Miami penthouse.
The penthouse offers a beautiful view of the Biscayne Bay. And it has a 4,000 square foot terrace as well. The current price of the property is $1.49 million.
4. Oakland Hills Hacienda (Oakland, CA)
Back in 2007, things were looking up for quarterback JaMarcus Russell. The Oakland Raiders signed him up for a seven-year contract for $61 million. However, he did not live up to expectations and was released from the contract after three seasons. A cash windfall followed, but perhaps not enough for him to pay $195,512 as mortgage payment for his $2.4 million home. If you are looking for foreclosed homes for sale, this could be a great option.
The Spanish-style home that overlooks the bay is spread over 5,800 square feet and houses six bedrooms, 8 bathrooms, 4 fireplaces and a four-car garage.
5. Malibu Park Mansion (Malibu, CA)
When it came up for foreclosure auction earlier this month, the Malibu Park Mansion opened with a bid of $3.4 million, a big drop from its earlier value of $4.6 million.
Spread over 6,978 square feet, the property is located in an area known for its luxury homes. If you are scouting luxury homes for sale near Zuma Beach, this is a dream home. Among other things, it includes a hot tub, a sauna, a chef’s kitchen and a salt-water pool.
6. Half-Priced California Villa (Malibu, CA)
Foreclosed homes for sale can be a great bargain buy. Take the case of this California villa near Malibu’s Point Dume beach. With four-bedrooms, six baths, tropical landscaping, verandahs, an outdoor kitchen and a pool, this seems like a dream come true. Back in 2006, it sold for $5 million. But now, at $2.8 million, it is worth half that amount.
Via: Business Insider