This week brought Countrywide under scrutiny from Congress and investors for questionable practices, while the Federal Reserve announced a bailout for lenders. There was a possible new development with Michael Jackson’s Neverland Ranch. Two big auctions of foreclosed properties will take place this coming weekend. So here is your weekly does of real estate celebrity news, news, upcoming events, and pick of the week.
Celebrity Real Estate
Paris Hilton’s ex-fiancée Paris Latsis has listed his Beverly Hills home for $15 million. Latis bought the home, which is located at 9374 Beverly Crest Drive, for just $9.2 million only two years ago. For some unknown reason, Latsis and his high-profile listing agents seem to think that the home has increased in value by 61% during two years of falling real estate prices and despite Latsis having made no improvements to the property. Latsis has previously sold another mansion in Beverly Hills and still owns a property in Santa Monica.
According to UK tabloid The Sun, two British billionaires have offered to buy Michael Jackson’s Neverland Ranch and lease it back to the pop star. Jackson supposedly built up a debt of $25 million paying for Neverland’s expenses – a staff of more than 50 and a zoo. It now looks like a wasteland, with buildings in disrepair and most animal enclosures empty, the tenants having been sold to pay debts.
Socialite/designer Stacey Bendet and musician Moby have gone in together to purchase a property in the vicinity of the Sunset Strip for $3 million. Bendet will use the house on the property as a salon to market her lines to celebrities and Moby will use the property’s guesthouse/garage as a studio.
News
The Federal Reserve has announced the institution of a $200 billion bailout plan for banks struggling with the subprime mortgage crisis. Under the plan, banks could swap mortgage-backed securities for treasury bonds. The plan has come under fire because the securities that the banks would be trading are currently on the market, but no one is touching them because of uncertainty about their future.
Bank of America has made a bid to take over Countrywide Financial. The deal would unite two of the lenders hardest hit by the subprime crisis.
Speaking of Countrywide, its chairman Angelo Mozilo testified about his pay package and the housing downturn before Congress on Friday. He said that there was no way for anyone to have predicted the current housing problems, even though people had been predicting a downturn for years. Mozilo was questioned about his extremely generous pay package, which had been awarded to him against the advice of two consultants brought in to evaluate his performance and determine proper compensation. Mozilo fired the consultants and brought in another; one who would recommend paying him what he wanted despite Countrywide’s horrible performance.
Estate of the Week
Called “the finest estate in America” by its listing agent, this week’s top estate is the Fleur de Lys estate located at 350 N Carolwood Drive in the hills above the Los Angeles Country Club. The main house features 12 bedrooms and 15 bathrooms and is set on 5.01 acres of gorgeous grounds. The price: $125 million.
Events
This week brings two huge auctions of foreclosed properties. The first, held by Catalist Homes, takes place on Saturday at the Pomona Fairplex. You must register here prior to the auction, which begins at 10 AM. The Pomona Fairplex, is located at 1101 W. McKinely Ave in Pomona (Map).
Whereas the Catalist auction features 75 homes, the Kennedy Wilson auction on Sunday features over 120. It takes place at 11 AM on Sunday at 222 North Vineyard Avenue in Ontario (Map).
Fleur de Lys photo via listing website
Michael Jackson photo via Wikipedia
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