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This is a classic example of people getting rich and going nuts with it. It would be so nice if people would see that God has blessed them with wealth to be good stewards of it. How foolish it is to build an estate that you can not possibly maintain or even use all of it. There are people starving in this world and people are throwing money away on this foolishness. Outrageous!
It sounds to me like many of these were strategic defaults, i.e., owners purposefully walking away and declaring bankruptcy of a shell LLC corp. while the rest of their assets are protected in a trust, separate corp., partnership, etc. What’s even more amazing is how many of these flops were the brainchild of so-called professional experts in the real estate industry. Now we all get to pay for the bad loans behind these white elephants via bank bailouts concocted by the creative minds of the Federal Reserve and Wall Street.
Heads they win, tails we all lose. The rich know how to stick it to us in more ways than we can possibly imagine. Thanks for bringing that to my attention again Forbes.
big is nice, but this is outrageous. What happened to classic elegant styles?
The vanity of the human being astounds.
Mega-mansions that mega-failed
By Morgan Brennan of Forbes
Casa Casuarina
Location: Miami Beach, Fla.
List price: $100 million
The digs: The 23,000-square-foot spread, where Gianni Versace was shot, has a hotel and gold-lined pool.
Owner: Peter Loftin
Legal woes: VM South Beach filed a foreclosure suit in December 2011 on a $25 million loan default; a year later Loftin's LLC is suing lender WestLB for fraud. There's also a pending bankruptcy claim.
- Forbes: See more of these mega-mansions
- On our blog, 'Listed': Price chopped at the former Versace mansion
Mega-mansions that mega-failed
Beverly House
Location: Beverly Hills, Calif.
List price: $95 million
The digs: The former Hearst estate has double master suites, two screening rooms, an art-deco nightclub and a spa facility.
Owner: Leonard Ross
Legal woes: Longtime owner Ross filed for Chapter 11 bankruptcy protection in 2010, reportedly because of legal disputes with several banks; he still owns the mansion, at least for now.
- Realtor.com: Search Beverly Hills homes for sale
- On our blog, 'Listed': For sale: Most expensive home in the U.S.
Mega-mansions that mega-failed
1220 South Ocean Blvd.
Location: Palm Beach, Fla.
List price: $74 million
The digs: The 27,000-square-foot lakefront house, which was built on spec, has a sculpture garden and an auto showroom.
Owner: Dan Swanson
Legal woes: In October 2012, Swanson filed for Chapter 11 protection on $26 million in loans from two creditors, including TD Bank.
- Realtor.com: What homes are for sale in Palm Beach?
- Video: $2.5 million for a hut?
- MSN Money: Too rich, too soon? What to do
- On our blog, 'Listed': The rise of the $100,000-plus closet
Mega-mansions that mega-failed
Villa del Lago
Location: Newport Coast, Calif.
2010 list price: $57 million
2012 auction price: $19.4 million
The digs: The 12.5-acre estate includes a 16,600-square-foot main house, 17-car garage, stables, vineyard and a wine cave.
Former owner: John McMonigle
Legal woes: The estate was sold in a bankruptcy auction after the owner, a real-estate agent turned luxury home developer, filed Chapter 7 bankruptcy after amassing a reported $50 million in debt.
- Forbes: See more of these mega-mansions
- Realtor.com: Find more Newport Coast homes for sale
Mega-mansions that mega-failed
Albemarle estate
Location: Charlottesville, Va.
2009 list price: $100 million
The digs: A 45-room neo-Georgian home touting a wine grotto and a helipad on the property.
Former owner: Patricia Kluge
New owner: Donald Trump
Legal woes: Bank of America foreclosed on ex-billionaire divorcee Patricia Kluge after she defaulted on a loan of more than $23 million. The lender took ownership of the sprawling estate in an auction on the courthouse steps. After 18 months of bank ownership, Trump stepped in and got it for $6.5 million in September 2012. Trump Organization already owns the surrounding lands and winery.
- Realtor.com: Search Charlottesville homes for sale
- On our blog, 'Listed': For sale: Most expensive home in the U.S.
Mega-mansions that mega-failed
Versailles
Location: Windermere, Fla.
List price: $65 million (unfinished)
The digs: The half-finished 90,000-square-foot home is America's biggest, with a two-story wine cellar, three swimming pools and 13 kitchens.
Owners: David and Jacqueline Siegel
Legal woes: In 2012, Bank of America scheduled a foreclosure auction for April (the second since 2011) but the time-share tycoon and his wife scored a $20 million loan from ICR Finance Services that allowed them to refinance, escaping foreclosure.
- On our blog, 'Listed': 'Queen of Versailles': Boom and bust supersized
Mega-mansions that mega-failed
St. Regis penthouse
Location: San Francisco
2008 list price: $70 million
2011 bank-owned list price: $35 million
REO sale price: $28 million in December 2011
The digs: This 20,000-square foot palace, once America's most expensive penthouse, greets guests with a two-story, indoor waterfall in the foyer. There's a home theater and a master suite equipped with a gym, steam room and sauna.
Former owner: Victor MacFarlane
Legal woes: The penthouse garnered several "most expensive" titles, from its 2008 listing debut to its REO resale, including most expensive foreclosure after Bank of America took ownership in lieu of foreclosure in 2011. The lender eventually found a buyer willing to pay $28 million — a 60% discount off the original asking price — in December 2011.
- Realtor.com: What homes are for sale in San Francisco?
- Video: $2.5 million for a hut?
- MSN Money: Too rich, too soon? What to do
- On our blog, 'Listed': The rise of the $100,000-plus closet
Mega-mansions that mega-failed
Le Reve
Location: Cummings, Ga.
2009 list price: $45 million
2011 REO sale price: $11.5 million
The digs: This Versailles-inspired 72-acre compound boasts 82 rooms including an arcade, a model train room and a home theater with a concession stand modeled after Atlanta's Fox Theater.
Former owners: Hubert and Norma Humphrey
Legal woes: This massive Atlanta-area compound cost a reported $50 million to construct in 2006; the builders lost it in foreclosure to the bank in 2010. A couple picked it up as an REO in October 2011 for nearly 75% below its original asking price.
- Forbes: See more of these mega-mansions
- Realtor.com: Find more Cummings homes for sale
Mega-mansions that mega-failed
Sherwood Country Club Estate
Location: Thousand Oaks, Calif.
List price: $15 million
The digs: The 13,000-square-foot Richard Landry-designed estate, originally constructed for hockey pro Wayne Gretzky, boasts two guest houses, a championship tennis court and an outdoor kitchen area.
Former owner: Lenny Dykstra
Legal woes: The disgraced baseball pro purchased the property from Gretzky in 2007, falling delinquent on mortgage loans and facing foreclosure by 2009. Dykstra filed for bankruptcy and the property fell into disrepair. Index Investors took hold of the home in foreclosure auction in November 2010, making repairs and just recently relisting it for sale.
- Realtor.com: Search Thousand Oaks homes for sale
- Bing: Who is Lenny Dykstra?
- On our blog, 'Listed': For sale: Most expensive home in the U.S.
Mega-mansions that mega-failed
Holyfield compound
Location: Fairburn, Ga.
Foreclosure price: $7.5 million
The digs: The massive 54,000-square-foot manse has 109 rooms including a bowling alley and a home theater.
Former owner: Evander Holyfield
Legal woes: The boxing champ owed more than $14 million on his Atlanta-area mansion, including taxes. In March 2012, lender J.P. Morgan Chase took ownership in a foreclosure auction for nearly 50% less.
- Realtor.com: What homes are for sale in Fairburn?
- Video: $2.5 million for a hut?
- MSN Money: Too rich, too soon? What to do
- On our blog, 'Listed': The rise of the $100,000-plus closet



