Last Friday, Melissa and Joe were in Superior Court in Morristown. But this time, the housewives couple was the plaintiff and the offended party. As you recall, Melissa and Joe put their Montville home on the market for $3.8 million and were having a hard time getting an offer. Here is what I said about that at the time:
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.
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.
So the Gorga’s eventually found someone who wanted to lease to own. Enter Kai Patterson, who agreed to pay $20,000 a month to rent the property and moved in. The reason that Joe was in court Friday is that Patterson’s rent check for April bounced and no further payments have been made for May or June, if the tenant is still there in July, Joe is out $80,000.
Patterson and Gorga entered into a long-term lease to own agreement where the tenant was to pay $20,000 a month in rent, and if the house was purchased within 12 months the buyer would get a credit of $100,000 toward the purchase price (presumed to be $3.8 million.)
Patterson did not show up for court on Friday on time so a default judgment for eviction was entered. Patterson did show up after everything was over and can file to have the judgment vacated. In other words, they seem to be back to square one.
Here are my questions. First, is that pesky little Assignment of Leases Agreement still in effect? If so, wouldn’t the $80,000 belong to the bank and not to Joe? How in the heck is Joe opening up a sanitation business if their finances are so bad that they are upside down on the mortgage? Is the sale price really $3.8 million as some NJ media outlets suggest? Where are the RHONJ people getting their money from?
From where I am sitting, the Gorgas seem to be financially strapped while feigning a life of luxury. We’ve seen the Giudices get in criminal trouble for these sorts of situations. The Lauritas are still battling a civil suit for allegedly spending company investments on personal items like cars and handbags. Why are so many people connected to RHONJ in such huge financial debt?