A record 120 preliminary foreclosure actions launched in The Hamptons during 2008 Q1

[Amerigo Vespucci]

TROUBLE IN PARADISE

FORECLOSURES LOOMING FOR THE HAMPTONS' POSHEST PADS

By SELIM ALGAR

May 12, 2008 -- 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, The Post has learned.

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

Twenty percent of those borrowers live in homes that are worth more than $1 million, according to figures from the Suffolk County clerk.

And the list gets longer every week.

"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 - a mix of rich and middle-class people from Riverhead to Montauk - have been flagged by credit-monitoring companies this year for late payments.

Brady said the high-end, delinquent borrowers are finance types, lawyers and speculators who overextended themselves on second homes and investment properties.

Some of the Hampton high rollers feeling the pinch are:

* Janice Becker, a regular on the Southampton village social circuit, is facing foreclosure on her multimillion-dollar Wyandanch Lane property.

* Advertising veteran Ransel Potter is defaulting on a $1.8 million mortgage on an Amagansett parcel.

* Real-estate honcho John Conroy is in lis pendens for a $3.5 million mortgage on a Bridgehampton spread on West Pond Drive.

* Former UBS executive Marc Warren is in lis pendens on a $1 million mortgage for a Mitchells Lane pad in Bridgehampton.

* Investor Roger Thanhauser is trying to sell a home on Main Street in East Hampton village to avoid foreclosure.



Socialite Janice Becker is facing foreclosure on her $5 million property on Wyandanch Lane in Southampton.



Investor Roger Thanhauser is trying to sell his house, estimated at $7.5 million, in East Hampton village.



Real-estate mogul John Conroy, who has a $3.5 mortgage on this Bridgehampton spread, is facing foreclosure proceedings.



Former UBS exec marc Warren has a suit pending against him over his Bridgehampton home and its $1 million mortgage.



Gone Bust: This Westhampton mansion, worth about $15 million, is one of 10 Hamptons pads foreclosed this year.

http://www.nypost.com/seven/05122008/news/regionalnews/trouble_in_li_paradise_110497.htm

[madaboutharry]

1. That is just staggering.

Why people buy houses like this when they don't have the money in the bank is beyond me.

[Dreamer Tatum]

2. Goes to show you how NOT rich some people are

The majority of very high end homes are bought with cash. Others are bought by fools. Serves them right.

[kestrel91316]

3. That's just crazy. I'll never live like that unless I win the lottery,

and then I'M PAYING CASH!!!!!!

Conspicuous consumption run amuck. Jeezus.