With the number of unemployed people nationwide running in the tens of millions, many mortgage loans are in forbearance, clouding the real state of real estate. Only after the grace periods are lifted and the curtain is raised will the damage from the pandemic become evident.

There likely will be a deluge of foreclosures, some 90 to 180 days following the expiration of forbearance periods, and those with the financial means to purchase will once again make plans to swoop down upon the victims of the devastation.

As is often the case, it is likely they will be disappointed in the foreclosure menu offered since the best properties will manage to avoid the bang of the auctioneer’s hammer on the courthouse’s charred steps.

To the uninitiated, the foreclosures are seen as easy money. Buy low, sell high. Nothing to it.

The lending institutions holding the mortgages and the government-sponsored enterprises guaranteeing the loans have other ideas. Their intent is to squeeze as much as they can from the buyers and minimize their losses. They report to a group known as shareholders.

The best deals in real estate are, for reasons mentioned, not usually foreclosures.

Others target wealthy homeowners trying to sell their homes. Buyers feel their substantial financial situation will allow the owners to take lower prices since “they don’t need the money.”

In reality, the house is a treasured asset, and these people did not achieve their status by making bad business decisions. The affluent are often the toughest negotiators. They buy low and sell high, and have for years.

One source of good deals can be estate homes. The heirs of the deceased usually have no monetary stake in the house, and often there is no loan.

In a case in which there are multiple heirs, a reduction is diluted. For example, if there are five heirs, a $10,000 reduction is only $2,000 each.

One situation that can be sticky or easy is when the owners are divorcing. And that brings us to the “sale of the week.”

Sale of the week

39 Bancroft Place

The house at 39 Bancroft Place sold last week for $3.7 million, a mere $185 per square foot, which is a somewhat misleading statistic as there were so many square feet to be spread over the $3.7 million. The house has seven bedrooms, seven full bathrooms and three half-baths scattered about its 19,983 square feet resting atop 8.56 acres.

The tax records cite one Allen Lentz, trustee, as the owner, but People magazine and others in the know identify the sellers as Jay Cutler and Kristin Cavallari, who paid $5.3 million for the home in 2012 and invested a considerable amount in renovation after purchasing it.

Cutler is a former NFL quarterback of the Denver Broncos and Chicago Bears. Cutler was the quarterback at Vanderbilt where he set passing records and was known as a courageous competitor who often ran for vital first downs and led his team to a victory against the University of Tennessee when such wins were not commonplace.

It was not unusual to see his helmet turned sideways with an earhole full of turf for his line was suspect, but not his heart.

His wife, Kristin Cavallari is the star of a realty series, “Simply Cavallari,” after working as a cast member of “Laguna Beach: The Real Orange County.” Additionally, she is a fashion designer with her own line of clothing and jewelry, Uncommon James.

They originally listed the home in June 2018 for $7.9 million, a number some estimate could be close to the amount they have invested in the property. One of the “improvements” was to fill the swimming pool, thereby eliminating a feature found in most houses with a high price tag. The couple did not seem to be on the outs at that time, and often sellers first list their homes for an amount that would, at worst, allow them to recoup their investment.

Realtracs shows the house was reduced to $6.9 in April 2019 and to $5.75 million in August 2019. In January, the price was adjusted to $4.95 million, where it remained until its sale for $3.7 million.

Keeping things in the Commodore camp, another former Vanderbilt star has a house for sale nearby.

David Price, a pitcher with the Los Angeles Dodgers, has his house listed for sale in the neighborhood. Price recently decided to opt out on playing this season, a provision allowed to all players due to the COVID situation.

As Tim Corbin continues to crank out high draft picks, look for more high-end houses to sell to former Vanderbilt players.

Richard Courtney is a licensed real estate broker with Fridrich and Clark Realty, LLC and can be reached at [email protected].