A newly built Southampton home that’s on the market for $14.98 million is facing foreclosure after allegations that the owners defaulted on their mortgage and now owe $6.9 million.
An anonymous Cayman Islands company, Blue Sky Ltd., is pursuing the foreclosure in federal court in addition to the UCC sale to assure that they get paid, according to the Real Deal.
Court documents allege that Mark and Nicole Gallagher of Port Jefferson Station defaulted on their mortgage on Oct. 1, 2021, citing multiple judgments and tax liens.
The two purchased the land for $1.02 million in 2017. The home was completed by 2021.
The home initially listed for sale in Feb. 2021 for $18 million.
If successful, Blue Sky Ltd. will take possession of the six-bedroom, eight-bathroom estate, located at 145 Wickapogue Rd., which spans 10,000 square feet.
The Cap Cod-style home comes with an expansive Gunite pool with a spa and sundeck, a wine cellar, a massage and sauna room, a theater and a gym.
While the loans remain in default, interest rates skyrocket to a whopping 24%. The loan was sold several times before landing in the hands of Blue Sky, TRD said.
The Gallaghers are now in a race to sell the home before the UCC sale, which is expected to take place on Jan. 12. Potential buyers have until Jan. 10 to submit a bid.
Other features include an elevator, floor-to-ceiling windows, a two-story foyer and a gourmet kitchen with stone countertops.
Shawn Elliott, head of the ultra-luxury division at Nest Seekers International, has the listing.
Southampton has some of the priciest homes in the nation.
This summer alone, 1116 Meadow Lane sold for $48 million. Down the road, 1730 Meadow Lane hit the market for $46 million.
Ex-Brit turned Manhattan resident since 2008.