Most Expensive Foreclosure in Chicago

A home in Barrington Hills has earned the dubious distinction of “Chicago’s most expensive foreclosure.” The home in question previously earned the title of “Chicago’s most expensive home sale,” in 2006. Three years and one financial crisis later and the owner’s have defaulted on the loan. Horizon Farms estate at 311 Algonquin Road was purchased for $19.3 million late 2006, with a $14.5 million mortgage. The estate comprises a 10,000-square-foot home; guest and staff quarters, plus numerous barns and a half-mile race track.

The current owners are disputing the foreclosure filing, insisting that the bank is at fault, although I understand the mortgage has already been extended twice. Presumably the current occupiers had intended to “flip” the loan and refinance when the mortgage became due. Like many in a similar position, refinancing these jumbo loans has become increasingly difficult, with the banks still facing liquidity issues.

This one certainly beats our current “most expensive foreclosure,” out of the top spot – Melvile House in Scotland – at a paltry £2 million ($3.3 million) and I suspect this will not be the last of this magnitude over the coming months.