Well damn. Once again, struggling business owner Peter Thomas and his investing wife, Cynthia Thomas are showing exactly what it means to be visually PAID, but BROKE! The owner of BarONE has recently entered foreclosure status on the restaurant. Located at, 687 Memorial Dr SE Grant Park, GA 30316, this beautifully designed bar, has not had a mortgage payment in quite some time, and because of its location, it has been listed as a short sale.
A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured byliens against the property, and the property owner cannot afford to repay the liens’ full amounts. Whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any shortfalls on the loans, unless specifically agreed to between the parties. However, in California, legislation was passed to preclude deficiencies after a short sale is approved. The same is true of lenders on first loans and lenders on second loans — once the short sale is approved, no deficiencies are permitted after the short sale. (SB 931, SB 458 – Calif. Code of Civil Procedure §580e).
A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. Both often result in a negative credit report against the property owner.
Update: Michelle of STraightFromTheA.com has an update on this story!!!!
I received an email tip over the weekend about the pending sale of the Thomas’ bar and while other sites were quick to report that Bailey and Thomas have made notorious list of “broke” Atlanta housewives, it seems that they forgot a few details.
Things are not always black & white…
Here’s the email that I received Saturaday…
date: Sat, Aug 24, 2013 at 7:13 PM
subject: Foreclosure Celebrity Tip Cynthia Bailey and Peter Thomas
We all remember the episode of RHOA where Cynthia loaned now husband Peter Thomas over 50k for his new investment after his failing previous endeavors. Extremely RELIABLE sources have confirmed that on September 3, 2013 both properties will go up for auction on the steps of Fulton County.
The Realty Company is called Closing Deals LLC The broker (Juel McGhee) personally has it listed and it is listed as a short sale.
Sad story……. Not Again!!!
I suspect that since the broker’s name is in it, that it’s probably from him (or his office). Whatever the case, I reached out to Peter yesterday and inquired about the news. Thomas was quite open about it and says that the Bar One property is leased and that it’s true that the owners are in foreclosure… not him.
Peter says he is renting the spot and while it’s true that the owners are offering the property as a short sale to avoid foreclosure, Thomas says that he’s submitted a bid and is “the first in line to purchase” the property.
After I heard Peter’s explanation, I wasn’t going to even bother blogging it but Thomas says he wants the truth out there so that there will be no misconceptions about him or Cynthia being foreclosure. So there you have it.
I’ve finally used my ‘powers’ for good.
This situation could actually play out on the show since they are smack dab in the middle of taping season 6.