Fracas over Farkas’ River House co-op continues

Bitterly disputed property scheduled for foreclosure auction

River House
River House

Despite an 18-year legal battle to seize control of a River House co-op, the soon-to-be-ex-wife of real estate heir Bruce Farkas has been unable to avoid foreclosure on the property, the Wall Street Journal reported.

An auction is scheduled for July 10 in the rotunda of State Supreme Court in Manhattan, according to a New York Law Journal notice seen by the Journal. The notice said that Arlene Farkas owed $5.8 million on the co-op as of April, “plus interest, fees, and cost.”

The 14-room duplex with a 29-foot-wide living room is simultaneously listed with three different brokerages and is asking $8.5 million. It has previously listed for as much as $15 million.

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Brokers familiar with the property told the Journal that the timing of her victory – Arlene Farkas gained control of the 5,000-square-foot home from her husband over four years ago during the downturn – hurt her sales prospects. Another issue, the brokers said, was that River House isn’t considered as high-end As Luxury Towers On Park Avenue.

Arlene’s son Matthew Farkas told the Journal on Monday that the auction had been stopped and had resulted from “some sort of confusion.”

But later that day, the law firm handling the auction, Stein, Wiener & Roth, told the Journal that the foreclosure auction was still scheduled. [WSJ]  – Hiten Samtani