Muddy manse

December 17, 2009

Selling your house? Worried about having to lower the price to get it to move?

How about a $1.275 million price reduction? That’s how much former Fannie Mae CEO Daniel H. Mudd had to cut the asking price on his 11,500 square foot, six bedroom, six full bath (plus three half baths) mansion to find a buyer.  Originally listed for $8.9 million on September 11, the transaction closed on December 11 for $7.625 million.

 

Don’t worry too much for Mr. Mudd, though. He paid $5.15 million for the place in June 2000, leaving him with a 48 percent return on his investment, excluding any renovation costs. And even though he was booted from Fannie Mae when the government took over the housing giant in September 2008 and reportedly wasn’t paid his multi-million dollar severance package, he’s landed on his feet. New York’s Fortress Investment Group named him CEO in August.

 

Wondering what you could have bought from the son of the former NBC News anchor Roger Mudd? Here’s the listing agent’s description:

 

“Completely restored prewar Georgian estate as it should be. Sits on 1+/- acres of meticulous & mature landscaping overlooking Rosedale Park. Residence feat spectacular entertaining spaces which all exit thru French drs to lvl terrace. Luxurious Mstr Ste, 5 addt BRms, 6 full/3 half BAs. .94 Acre lot with pool, gated drive & carriage house w/3car Gar.”

 

Not mentioned: The place is on the same tony street in DC’s Cleveland Park neighborhood as another former Fannie Mae boss: Franklin Raines.

Photo Credit: Corbett B. Daly

6 comments

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

I wonder why he wants to see at this time. Surely he can wait until economy is better.

Posted by scheng1 | Report as abusive

This is a balance writings on this lively subject.
Without proper, affordable price on buying and selling houses, price corrections, knowledge on day today prices on luxury segments, then, it will be very difficult to monitor and likely involved in these segments.Of course, U.S.A. markets are started to showing some encouraging results, but not yet totally on main stream.
My sincere advice to U.S.A. Citizens to wait,watch,analyse on any important sectors and then, they can decide whether to purchase or sell their hereditary properties and for new purchases.

Posted by mdspatsy | Report as abusive

Speaking of distressed real estate? How about the Llenroc Mansion located in Clifton Park in upstate New York. This 60,000 sq ft mansion is estimated to have cost upwards of $30,000,000.00 to build but just sold for a paltry $1,900,000.00.

Follow the link below for an interesting story on one of New Yorks biggest real estate misadventures….

http://www.timesunion.com/AspStories/sto ry.asp?storyID=879676&TextPage=2

Posted by Missinginaction | Report as abusive

It will cost more to operate and maintain each year than the auction price.

Posted by eddieblack | Report as abusive

I wonder if he’ll find some way to AVOID paying TAXES on it. Maybe he can use TurboTax, as Geithner did, plead being an ignoramus (like Geithner) and get away with it.

Posted by stevor | Report as abusive

The simple facts are: 1) lenders are still DEMANDING homeowners first be no less than 60 days delinquent (a 180 point credit hit). 2) The process takes at least 7 months. 3) even when successful, the modifications put in place are not conducive to long term compliance… just the opposite. 4)IRS code makes it more profitable for lenders NOT to cooperate, and foreclose on homes…

There are no less than another 3-4 million Option ARMS (100% of the WaMU, Wachovia and Downey portfolio’s) that are underwater… cannot remotely be refinanced. with modification being the ONLY answer… Case Shiller, RealtyTrac and the rest of the “experts” are off by a factor approaching 100%… by the time that this bloodbath ends, in no less that 3-5 years, 23-25 homeowners will have been devastated…

Posted by GotDOCG | Report as abusive