Originally Posted by MicroRoller
He bought the house for $2.55mil only $200k was owed on it. I understand there are reasons to do this but it seems odd.
There was a $2.8M loan made on the property in 2006 and a $1M second in 2007. The amount due the senior lien holder at the time of the foreclosure sale was $3.008M. I am sure this, like many other similar foreclosures, was a business decision and not necessarily a function of Barry's financial status, although I know he was significantly impacted by the housing market "crash" and subsequent stock market woes.
At some point it becomes difficult to justify throwing good money after bad. The market downturn undoubtedly devalued the home to the point where Barry was upside down with little to no hope of the market catching up to the amount owed any time soon. He and/or the property may not have been eligible for a short sale. In any event it is likely he just decided to cut his losses. It is a beautiful home on a stunning piece of property, but was huge and super expensive just to run and maintain.
I have not seen Barry for a few weeks, but the last time I did he looked great and was in good spirits, playing in a hi limit stud game. I am sure he will be just fine. Despite what others may think after reading some of the comments here Barry really is a great guy. I am lucky to be able to call him my friend.