Lots of rumors flying around about RHONJ this morning including a blind item that one of the housewives is about to file for bankruptcy. Then, I read this article over at Daily Mail that the Gorga’s are selling their home. Click the link to see all the pictures, they are fabulous. I don’t really remember the house being so … stuffy on the show. The Daily Mail article implies that the Gorgas may be wanting to move to LA. To me it seems more like they need to liquidate their largest asset.
The house is listed at $3.8 million. The house was previously listed for $4.1 million in November of 2009 and removed from the market in early 2010. What do you think of this latest development? Are they about to load up the truck and move to Beverly? Or do they just need to downsize?
UPDATE: US Weekly just posted an “exclusive” on this story. They have an couple of quotes from Melissa and Joe saying they want to move back to Franklin Lakes. What interested me is that Daily Mail scooped US Weekly on the exclusive. It’s almost like someone leaked the info to the Daily Mail.
Click through for UPDATE 2:
Short little timeline: The Gorga’s bought the 2+ acres of land in February 2007 for $950,000. I found no mortgage records for tha purchase. They took out a construction loan in November of 2007 for $2.25 million. As part of that mortgage they were required to have the home as their primary residency for at least a year. (Thus the rumors about it being some sort of spec home owned by the business are false, All mortages are in both Joe and Melissa’s name as their primary residence).
They modified the mortgage in July of 2008. It appears the agreement was they would pay only the interest of 6.25% per annum for three years ending on July 2012 and then make payments of $14.842.46 a month for 25 years.
Also in 2008 there were two liens on the property one for about $5K and another for about $25K, These were paid off at some point prior to the next refinance in 2011 and most likely prior to listing in 2010.
The house was put on the market in November of 2010 for $4.5 million and removed from the market in September of 2011 just before they began filming RHONJ.
BUT THEN While the house was on the market, They refinanced again, with a principal of $2,185,199.07 and a new interest rate of 5% in April of 2011 giving them a monthly payment of $11,829.40 They began making those payments on April 1 of 2011. At the same time the did this refi, they signed an Assignment of Leases agreement. Where essentially the bank was given all rights to any rent that would be received from renting the property in any way. I’m not sure what that was about. They could have been planning to rent the property rather than selling it, or were preparing for a possible rent to own sort of contract, or perhaps Bravo was technically renting a portion of the property in some way for filming. Whatever the reason the bank had a special agreement regarding any rent that the Gorgas might receive or did receive.
In February 2012, the “shore property” was put on the market for $520K. The main property was listed at $3.8 million
I’m not sure where these “moving to LA” rumors came from but the Gorga’s official story in US Weekly seems to be the want to be back in Franklin Lakes for the school system. Looks to me like they just need to get out from under the big monthly mortgage payments. They’ve got just over 3 million in the property and will likely be unable to get anywhere near that. Zillow values the houses on their small street in the range of $1.5 million. Looks like they are upside down.