Amquix Real Estate Crisis

GDuncan.jpg (19711 bytes)It seems WWDB triple diamond and former IBOAI board member have decided to let their numerous properties in Whitefish, MT fall to the auction block through foreclosure.    I guess they are taking the same tactic as WWDB Diamond David Shores when he let his house fall into foreclosure a few years back.   A site visitor sent me the initial information and I confirmed three of the five foreclosures on the Internet. 

Well then, get your checkbooks out and head on out to Whitefish, MT where you can bid on four of triple diamond Greg Duncan's properties on October 1, 2008 at the big foreclosure auction!   Maybe WWDB can have an impromptu "Dream Weekend" as they see their triple Diamonds's homes go to the highest bidder! 

Greg and Laurie have quite a collection of property all on one street and on the Lake in foreclosure.  I'm surprised they had not named it "Duncan Drive" before now.. 

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First there is 706 Birch Point a 3 bedroom 5 bath 6,117 sq. ft house.   930 Birch Point is a somewhat smaller 4 bedroom 3 bath 3,250 sq. ft. property.  If your tastes are for still yet for something smaller there is 920 Birch Point a 3 bedroom 2 bath 1791 sq. ft. property.  If that is still tool large there is the 1,024 sq. foot house at 850 Birch Point going on auction Nov. 24, 2008. 

If you really need a lot of space you might consider the house, also on Birch point, with 7,323 square feet , 6 bedrooms and 4 baths for auction on October 1, 2008.  If you happen to know the street address, please send it my way.  It was not in the foreclosure data.

You have to wonder if despite a triple diamond income, with ownership in XS energy drink (said to be 10% of Quixtar's sales)  and All-In energy drink and the potentially huge take from the WWDB tools systems, why he would just let the properties fall into foreclosure?   It would seem that this is all counter to what is preached on the WWDB stages about taking responsibility for one's actions.  Is he cash poor, or does he want the banks to take the loss for him?

A real estate guy wrote me and explained the situation a bit. 

There appear to be four properties on one loan with an outstanding balance of $1,517,163.  This appears to be a risky interest only loan.  The fifth property in pre-foreclosure was covered by a separate mortgage.  It has a different trustee as well.  The total tax assessed value of these 5 properties, according to the website posting, is around $4.2 million.  Tax assessments tend to be lower than the market values, depending on what the real estate market is doing.   Whitefish is doing OK, from what I understand, although it isn't as hot as it was a few years back.  And, there is less than the delinquent payments.

First, if there is any equity at all in these properties, they will never make it to a foreclosure sale.  If a person had to, they would beg, borrow, or steal the money to protect what is probably $1.5 to $2 million or more worth of investments - at least until they could be sold.  I have seen situations like this where a person has had a dispute with a mortgage company and stopped making payments until things were resolved.   It does happen.  I seriously doubt that these properties will get foreclosed on. But, stranger things have happened.......  Just ask David Shores!

Regarding your foreclosure question, no, once the property is foreclosed, the owner who defaulted is completely out of the picture, UNLESS the lender could prove fraud.  That is sort of like a bankruptcy.  If a person went out and maxed out a few credit cards just before filing bankruptcy, those debts often are not forgiven and the lien holder may continue collection efforts.  So, with a mortgage that is now 3 years old, that probably wouldn't happen.  I would again say that I seriously doubt these properties will be foreclosed on.  "Pre-foreclosure" is simply a state of default where the lien holders issue both public and private notices that they intend to exercise their legal rights of foreclosure IF the mortgagee does not bring the loans current, plus any interest and penalties.  I calculated a total approximate tax assessed value of $4.2 million, and a default judgment of just over $1.5 million (according to that website.)  Tax assessments usually are slightly below market value to, sometimes, well below market value.  I would bet that there is close to $5 million in real estate there.  If he had to, Greg could sell them quickly at 50 cents on the dollar and still pocket over $750,000 AFTER paying the lien holders and the closing costs, commissions, etc.  If Greg really is in that much trouble, I would bet that his brother would bail him out.