Foreclosure sale, private auction canceled for Unit 712-E at Palm Beach Biltmore; condo instead listed at $2.5 million.
| Palm Beach Daily News
At the lender’s request, a courthouse foreclosure auction that had been scheduled for Oct. 13 for a well-appointed condominium at the Palm Beach Biltmore has been canceled.
And that action also spurred the owners to cancel a private “pre-foreclosure” auction of Unit 712-E, scheduled for last Friday with a minimum bid of $2.5 million, as previously reported by the Daily News.
Circuit court Judge Scott Kerner on Sept. 18 granted lender E*Trade’s request to cancel the courthouse auction of the seventh-floor apartment, which is owned by Kenneth B. and Lynnea J. Elkind.
The courthouse auction, however, could be rescheduled after the New Year, court documents show. But the cancellation has bought the Elkinds some time to sell their condo privately and pay off their debts, said Jim Banford, CEO of Real Estate Asset Disposition Corp., who has the condo listed with an asking price of $2.5 million, the starting point for negotiations, he said.
“Our goal remains to unlock the owner’s equity by marketing the residence to sophisticated buyers who appreciate quality,” Banford said Tuesday.
Banford’s West Palm Beach-based company specializes in selling properties in financial distress and had organized September’s private sealed-bid auction. He and the Elkinds canceled it after the lender made its Sept. 16 motion to stop the courthouse auction.
>>RELATED: Palm Beach Biltmore condo headed to ‘pre-foreclosure’ auction with $2.5M starting bid
Filed in 2019, the foreclosure action was related to a defaulted $1.98 million mortgage with a payoff of more than $2.2 million, court documents show. The mortgage is serviced by Bayview Loan Servicing LLC.
The cancellation of the courthouse auction was related to the coronavirus pandemic — specifically to a temporary moratorium on foreclosure sales and evictions to provide support for owners with mortgages backed by government-sponsored Fannie Mae and Freddie Mac.
The foreclosure action against the Elkinds did not involve the two government-sponsored enterprises. But in his motion to cancel the sale, an attorney for the Elkinds’ lender said the company was “following” the Fannie Mae and Freddie Mac moratorium extension and “will file a motion to reschedule the foreclosure sale of the property once it is deemed appropriate.”
In the order approving the cancellation, Kern said the foreclosure auction would to be rescheduled within 10 days of the moratorium being lifted.
That’s unless the apartment sells first, of course.
The apartment is on the northwest corner of the south wing at the Biltmore, 150 Bradley Place. Offering city and Intracoastal Waterway views, the unit has 2,005 total square feet and was extensively renovated by the owners, who reduced the floorplan from three to two bedrooms. Among its features, the condo has marble slab floors with fossil-stone inlays, along with wall paneling of honey-tone book-matched anigre wood.
The cancelled private auction attracted enough interest to convince Banford the condo would likely sell before the Dec. 31 moratorium deadline, he said.
>>RELATED: Palm Beach couple reworks Biltmore condo to create restorative retreat
Darrell Hofheinz writes about real estate in his weekly “Beyond the Hedges” column. He welcomes news items about Palm Beach real estate for this column. Email [email protected], call 820-3831 or tweet @PBDN_Hofheinz.