Tuesday, January 18, 2011

Patricia Kluge's Albemarle House: Once Listed at $100M, Now Scheduled for Foreclosure Auction

Over-valued, over-leveraged, and now to be "lost" to foreclosure auction on the steps of the Albemarle County Courthouse, currently slated for February 16.

Lisa Provence, reporting for The Hook, has all the details about the failed "mansion"  project "Vineyard Estates," the recent foreclosure of Kluge Estate Winery, and the briefcase full of papers Kluge's husband, Bill Moses, showed her at his attorney's, indicating "lost" opportunity and suffering from "The Great Recession," a succession of "misfortune" leading to the loss of "Albemarle House."

Story's not over...but read the current details here.
More on the foreclosure and liens on the contents of the house here.

1 comment:

Anonymous said...

A lot of details regarding the winery foreclosure appears to be missing. From newspaper reports, it seems that the Kluge Estate Winery was out of compliance with a line of credit covenant beginning in 2007. Reports also mention that Farm Credit asserted that it never signed a waiver relating to the violation.

So what conversations occurred between Kluge/Owens and the lender since the date of the default? When did the lender know about the default and what explains the time period between the default and the actual foreclosure?

Also, if the winery could not meet its sales targets for 2007, what business rationale was there for Kluge/Owens to continue to expand production? Exactly what kind of financial advice, if any, did Kluge/Owens receive? What accounting techniques/assumptions were employed to determine actual and future profitablity?