Wednesday, May 26, 2010

High End Defaults and Foreclosures in Charlottesville and Albemarle County

Post originally appeared 5/26; updated 5/27. Update 2, 6/11 on bottom, listing still for sale.
Some notes on this post:
  • 1 in 7 mortgage holders is in default or foreclosure.
  • More high-end defaults and foreclosures are showing up in local public notices, part of a national trend.
  • "High end" owners, builders, and local personages who have recently had default notices and/or foreclosure auctions scheduled include Patricia Kluge et al; Halsey Minor; Jamie Spence and Joshua Goldschmidt of Church Hill Homes; Chris Bowen and Skyline Builders; Realtor Doug McGowan; Weather Hill Homes;  an apartment managed by Stonehaus; Barry Meade Homes;  even Forest Lodge LLC, which has among its investors Hunter Craig and Boyd Tinsley, may have been, if you read bank records, in default before being "bailed out" by the Commonwealth of Virginia...etc etc etc.
  • 3796 Stony Point Road, the property mentioned in this post, is basically a solid example of bubble valuation in this area.  Purchased for nearly $1.4 M in 2007,  in 2010 offered for sale at nearly half, and assessed at $200k less.
  • UVA is the largest presence and employer in this area.
  • UVIMCO, UVA's investment arm which manages the endowment and thus contributions from many people in this area, has had financial losses and personnel in the news recently.
  • Upshot: Locally and nationally, foreclosures happen at all price points, are recently rising in this area at the high end, and are happening to those who have/manage large amounts of money and assets, as covered by this blog and Main Stream Media, including c-ville, The Hook, the Newsplex, The Daily Progress, etc.
Original Post begins below: Will UVIMCO's Managing Director Be Part of Today's Foreclosure Tsunami?

Albemarle County has 11 foreclosure auctions scheduled for May 26, equaling $21M of loss to mortgage lenders.  A commenter in the above-linked post noticed that one of the properties, 3796 Stony Point Road is, according to public records, owned by UVIMCO's  Managing Director, Michael Aked.

So what of "risk management"?  Foreclosures happen at all price points, and for all sorts of reasons.  Still, frequent commenter "Humpty" wondered if someone who is in foreclosure is fiscally responsible enough to be  handling other peoples' money.  Another commenter, "rfs," noted that this was "sad," but wondered if the default should be disclosed to prospective buyers, since the property is also for sale.  

Similar comments along the lines of "Is he fiscally fit?" concerns were raised when Realtor Doug McGowan's troubles were chronicled in C'ville Weekly as he lost two investment properties to foreclosure.  McGowan additionally lost his own $1M + residence, too.  But McGowan seems to have bounced back.  Not only is he still agenting on behalf of other people in what is typically the largest investment purchase of their lives, but he also recently purchased a new home, according to County records.

But back to UVIMCO, its Managing Director, and this property.  According to another commenter, 'Montpelier,' the property has been listed for foreclosure auction in the past.  "Scheduled" for foreclosure doesn't preclude a default from being cured, often at the last moment.  

Still, it seems UVIMCO is getting public notice lately not for its investments--and lack of, since it bled $1B during the Great Recession--but for its personnel.   Ex-CEO Christopher Brightman recently stepped down due to an alleged affair, and has listed his house for sale. 

The foreclosure auction is currently scheduled for 4pm, but as said above, the delinquency could be "cured" before that.

Details for 3796 Stony Point Road
Purchased in 2007 for $1,375,000
Foreclosing at $1,080,000
Currently asking $774,900
Assessed at $529,700

3796 Stony Point Road, is listed for sale: $774,900k "as is".

 Assessed at:
 Detailed notice of foreclosure is here. 

Update 2 This listing is still available for sale.  Price reduced $20k or 2.9% on June 6.  See here and here.

Original Post Title: Will UVIMCO Managing Director Be Part of Today's Foreclosure Tsunami?

12 comments:

Anonymous said...

God, are you sad little people, trying to ruin other people's lives.

Anonymous said...

all this info is publicly available in numerous outlets. your ire is misplaced.

Anonymous said...

Fair point.

Tell you what, you post your real name, and I'll fill up a blog with every publicly available piece of information I can find about you.

Deal?

If not, why not?

Real C'ville - The Bubble Blog said...

anonymous 5:19, fwiw, this post doesn't have "every available piece of information" about any one or anything. It looks at high end foreclosures in general, and one in particular. This is a local example of a national systemic problem.

Anonymous said...

It's singling out one local guy because of his job. Don't be a coward, stand by your sliming.

Anonymous said...

4:40, go check this out: www.logicalfallacies.info

Anonymous said...

Slime doesn't apply here and neither does shame except in your narrow mind. Foreclosure is mainstream. Welcome to 2010. What a mess that is the United States housing market. A lending environment where 650 is about to be the new 800. imo, somebody who has gone through a bankruptcy, short sale, or did strategic default is going to be much savvier in finances. Both personally and professionally.

This NY times financial reporter even wrote a book about his foreclosure "Busted"

http://www.capitalgainsandgames.com/blog/edmund-l-andrews

Montpelier said...

@Anon4:40PM

This guy is being pointed out because he purports - very publicly in McGowan's case - and only slightly less so for UVIMCO - to be A FINANCIAL EXPERT and they clearly SCREWED UP and exercised BAD JUDGEMENT.

Tell you what, when what I do and purport to be an expert in pops up on the public radar, feel free to use the publicly available data out there to analyze the quality of my judgement.

Sorry, the emperor has no clothes - nobody is a sad little person ruining anyone's life, EXCEPT FOR Brightman and McGowan, with respect to their own lives.

Montpellier said...

So, did anyone get down there to see what happened? I didn't make it. How many of these auctions were cancelled?

Carlos said...

Use an LLC to own property. A limited liability corporation that you form and transfer your property to. Then you have your lawyer listed with the State Corporations Commission as the contact. Not only do you limit your liabilities personally and financially, but ownership is hard to track. Why this Realtor or these investment guys didn't do this is a question mark.

Humpty said...

@Carlos,

To do what you are saying would mean you would have to buy with your own cash. You certainly can't get a 15 or 30 years mortage for $1m+ using an LLC. If your LLC has a personal guaranty (your lawyer will need one heck of a positive balance sheet) you might be able to get a local bank to forward a loan with 50% down.

Real C'ville - The Bubble Blog said...

Update - Price reduced 2.9% to $754,900k.

"Strategic Default" as savvy business practice....

It's becoming mainstream. "Chamillionaire" the rapper just discussed his decision to do so and it was picked up in nat'l media.

Property details:

http://www.trulia.com/property/1089168913-3796-Stony-Point-Rd-Charlottesville-VA-22911

and

http://www.realcentralva.com/search-charlottesville-mls/#PropertyID=22408148