TROUBLE IN LI PARADISE ( Long Island, NY )

NEW YORK POST ^ | May 12, 2008 | SELIM ALGAR

[george76]

Homeowners in the some of the toniest ZIP codes in the Hamptons are facing a frightening reality - they can't afford to foot the bill for their high-priced homes...

In the first three months of this year, banks have launched preliminary foreclosure actions - known as lis pendens proceedings - against a record 120 borrowers ...

"This problem didn't even exist before," said John Brady, a broker with Coldwell Banker in East Hampton. "They used to pop up once in a while, and you wouldn't even pay attention. Now you expect to see new ones every week."

A total of 10 East End homes, including a massive Westhampton mansion, were foreclosed outright since the beginning of the year.

In addition, more than 800 East End homeowners...have been flagged by credit-monitoring companies this year for late payments.

[boycott]

I understand that George Costanza has a nice home in the Hamptons.

[pnh102]

.

^
Behold, the world's smallest violin.

[Frank_2001]

Yeah, couldn’t have happened to a bunch of nicer people;)

[cherry]

probably most of these people will come out fine.....they use their homes as speculation anyway....not a real home ...

[Clemenza]

Great. Now I can finally pick up a place in Amangansett at the fire sale that’s about to take place!

[count-your-change]

Oh dear, Snobfolk being bitten by the bear? Well, Lipstiff, just make sure that leased Bimmer is hidden since you might need to call it home if Frozehart, the banker, won’t take “toniest” for payment.

[skr]

I’m sorry for those who are losing a family home; a small percentage might be due to medical bills or loss of livelihood. Those who were speculating, well, gambling is risky business.

[rmlew]

Amangansett has always been more affordable.
Actually, the Hamptons are facing a glut of the 1 to 5 million dollar homes. However the higher end is still booming. 20-100 million are doing well. In fact some developer just purcahsed a farm and pond near Southampton Hospital and, after some environmental engineering and groundskeeping intends to sell multi-acre gardened lots for $20 Million apiece.

I was just out there this weekend taking a walk/estate tour of Watermill (Southampton) with my mother, who is a realtor.

[rmlew]

No. the Rich and Upper middle class are fealing a pinch. The ubber rich are doing well.
If you are willing to spend 20-100 Million, I'll show you some homes, but you need to act fast.

[Clemenza]

BTW: I don’t care what the wannabes say: West Hampton and Hampton Bays are NOT the Hamptons! ;-)

[AlaskaErik]

BTW: I don’t care what the wannabes say: West Hampton and Hampton Bays are NOT the Hamptons! ;-)

Exactly what are the Hamptons? I've heard the term a few times over the years.

[Arguendo]

A very rich (if largely new money and somewhat tacky) area on the south shore of Long Island. Many of the most famous New Yorkers have houses out there.

[nutmeg]

Actually, the Hamptons are facing a glut of the 1 to 5 million dollar homes. However the higher end is still booming. 20-100 million are doing well. In fact some developer just purcahsed a farm and pond near Southampton Hospital and, after some environmental engineering and groundskeeping intends to sell multi-acre gardened lots for $20 Million apiece.

Incredible. Just curious: What do many of the owners of these $20-100 million properties do? How can they even afford the insane taxes each year on these properties, not to mention the upkeep of these places?

[Clemenza]

The Hamptons are a collection of upscale summer resorts on the south fork, at the very end of Long Island. The communities usually associated with the Hamptons are Easthampton (once artsy, now just wealthy with lots of celebs), Southhampton, Bridgehampton, Springs, and Amangansett. Montauk, which is east of the Hamptons proper, is not considered part of the Hamptons.

Basically, its where celebrities, hedge fund billionaires, and those who love them spend their summers.

[Clemenza]

What do many of the owners of these $20-100 million properties do?

Hedge Fund and Private Equity heads, NYC real estate moguls, along with several folks in the entertainment industry.

[Clemenza]

In the US, even in New York, there really is no such thing as "old money" anymore. The phrase was first used to describe Cornelius Vanderbilt when he arrived on the NY scene, and is a rather antiquated term.

"Old money" must not be subdivided, and must appreciate with inflation. In most cases, it does not.

[nutmeg]

Thanks... kind of what I expected. It's hard to imagine having seemingly endless amounts of money like that.

I don't know the Hamptons very well... the thing I remember the most are the many extremely tall "privacy hedges" that block the view (from the streets) of many of the houses.

Let us know when you close on your Hamptons manse overlooking the ocean... it'll be a great spot for a FReeper gathering! ;-)

[Hildy]

wonder if he’ll have to sell Prickly Pete.

[Arguendo]

True, but there’s still a different between the people you’ll find in the Hamptons from the people you’ll find in places like Bedford, NY or many parts of Fairfield County, CT.

My impression was that money is far more openly and prominently displayed in the Hamptons than in many of the “preppier” suburbs.