Mysteriously High Price on Grand Avenue
Here’s a stumper right in our own back yard. According to Property Shark, the brownstoner at 354 Grand Avenue sold in December for a whopping $1.9 million. Even if this were one of the larger-scale brownstones on the next block this price would seem quite high. But this is a 13-footer across from a row…
Here’s a stumper right in our own back yard. According to Property Shark, the brownstoner at 354 Grand Avenue sold in December for a whopping $1.9 million. Even if this were one of the larger-scale brownstones on the next block this price would seem quite high. But this is a 13-footer across from a row of newish row houses lacking the charm that the neighborhood is known for. If accurate, there must be some development twist to the purchase. As far as we can tell though, the property is not contiguous with any larger lots or buildings. It also falls just outside the Clinton Hill Historic District line. Any theories?
GMAP P*Shark
I think people are spinning all different sorts of theories here. Bob999, sounds like you bought a place with a first and second mortage (probably had a HELOC for the second) to avoid fees. Pretty standard, though I’m surprised you wouldn’t know the details of the financing of a property you are goig to buy, even if you give someone a power of attorney to take care of the closing. Maybe I’m missing something here.
Who knows what’s up here…
Funny, I feel like I have been noticing this too. I have looked at several houses that were purchased just moth earlier for a fraction of the price they are asking (at least according to property shark). But when I dig deep down I find that giant mortgagees have been taken out on the places in the interim.
For instance, one place was purchase in September for $1M, they started marketing the house in October for $1.6M. The house is inhabitable and a mortgage was taken out on the house for $1.4M. I started to wonder who would lend $$ for this house? And then I realized if a crooked Mortgage broker and appraiser and seller were in on this they could point to the documented mortgage amount as proof that the house is worth at least $1.4 to the potential buyer.
Maybe I am just another paranoid New Yorker!
This kind of duel-loan thing is not unheard-of. My last purchase in Manhattan–one for which I foolishly did not attend the closing–was financed this way, to my manifest shock. The sleazeball broker got us about 70% of the money via the regular mortgage, then signed us up for some kind of second mortgage for the remainder. Don’t think there is anything illegal about it, but what do I know. I do know I will never skip another closing…
I’d be interested in watching this one unfold. I’m willing to bet that this one will end up in Foreclosure, as this is almost certainly a fraudulent case.
read this article and you’ll see what’s been happening.
http://www.mortgagefraud.org/journal/2006/12/12/two-men-charged-in-brooklyn-real-estate-investment-fraud.html
congratulations B’stoner. looks like your house is now worth $3M!
pshark is not wrong. Deed can be found on Acris clearly stating the 1.9 price. Info on the financing, as mentioned above, is also there.
So the scenario described by Putnam Denizen is a scam that fraudulent buyers perpetrate, so that the buyer’s 500K mortgage (in the example) is repaid by the “straw buyer”, leaving the fraudulent buyer with cash in an account…?
Would seem like a difficult ruse to pull off and not be easily caught.
Maybe pshark is wrong. It happens all the time.
It’s Called Fraud!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Dumbasses!!!!!!!!!!!!!!!!!!!!