The home eventually sold for around $720,000, according to Utah County records, after J.P. Morgan Chase agreed to write off the loss in the value and Lee forfeited his "significant" down payment.
Salt Lake Tribune
Originally purchase in January 2008 for $1.1M.
My heart goes out to Senator Lee and especially his children for what is doubtless a painful experience. But I must ask: would JP Morgan Chase agree to a $400,000 write down for someone NOT a US Senator? Even if Lee put 20% ($220,000) down this is still a $160,000 loss to JPM. Having tried to purchase short sales, I know that getting the bank to agree to taking a loss is like pulling teeth from a grizzly bear with gingivitis.
So, maybe nothing, but maybe someone in Utah should take a look at this.
Using a mortgage calculator, plugging in a 4% interest rate, and making some guesses about insurance and property taxes, which go into the escrow account, I make the monthly payment if Lee put nothing down around $5200 / month, and if he put 20% down, around $4200 / month. That's a pretty big bite out of a $15,000 / month gross income.