No Loan made or cash sent why go bankrupt?
Daily blog 7.10.2009
Published: Thursday, 9 Jul 2009 | 11:41 AM ET
Jane Wells
Correspondent
I am at Lenny Dykstra’s $24 million mansion in Sherwood Country Club, where I snapped this photo.
Dykstra is here and preparing to be interviewed by me about his Chapter 11 bankruptcy filing
I plan to post the entire interview later today, as well as air portions on CNBC.
Stay tuned…
Wait He says when he bought Wayne Gretzky’s estate two years ago, a broker from Washington Mutual promised him a single $17.5 million loan, but delivered only $12.5 million.
Dykstra says he was urged to go get a second $8 million mortgage, to complete the $17.5 million and allow him to have some extra cash, as the house, Dykstra says, appraised for $25 million.
CNBC Reporter
Dykstra says the broker promised he could refinance both mortgages into one affordable payment after 60 days. But the baseball legend claims the mortgage broker disappeared.
There was no re-fi.
Meantime, he was paying close to $200,000 a month in mortgages, and his income was only $125,000, that money coming from a promissory note he received after selling his car wash business.
Unable to continue paying more than he was making, Dykstra says he was forced to sell the promissory note back to the owners of the car wash to pay off the second mortgage. That erased his nest egg, he says.
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