Bank forecloses on Durham's Geist mansion
Jennie Runevitch/Eyewitness News
Fishers - Millionaire Tim Durham is about to lose his mansion on Geist Reservoir. The bank which holds the mortgage is foreclosing on the former investor, saying he has missed six straight payments.
Durham's 10,000 square foot mansion still has a freshly-mowed lawn. Packages are still being delivered there, but the monthly mortgage hasn't been paid. The estate of the embattled businessman now faces foreclosure.
According to court papers, Durham's mortgage payment on the mansion was more than $18,000 a month. But the bank says he hasn't paid a thing in six months. The last payment received was March 1.
Court records show Durham owes JP Morgan Chase $3.5 million. He also owes Shelby County Bank for a line of credit.
Originally, it was hoped money from the home's sale would pay back investors from Durham's collapsed company, Akron, Ohio-based Fair Finance. But now, Kelly Burgan, the attorney for the Fair Finance bankruptcy trustee, doubts those investors will ever see a penny from the mansion, even if it sells for the listed asking price of $5.5 million.
"Based on our analysis, it looks like the outstanding amount of the two loans that are ahead of us could be greater than the property is worth, so we're just not terribly hopeful there will be any money left over for us," Burgan said.
The FBI raided two Durham companies last year, including Obsidian Enterprises on Monument Circle, amid a federal investigation of a possible Ponzi scheme. Durham denies any wrongdoing.
But when Fair Finance crashed in 2009, investors lost $200 million. To get their money now, attention turns to Durham's car collection and expensive artwork, which are set for auction.
"Even thought the economy in general is down, the collectible car market remains strong. I also am hopeful that there will be maybe a better than we expect recovery on the artwork," Burgan said. "So those things give me some hope."
But the setback is clear from the foreclosure - a luxury home with little left for Durham's investors.
"We're frustrated by it and I can't even begin to imagine the investors feeling and frustration," Burgan said.
Despite the raids at Durham's offices in Ohio and Indiana, no criminal charges have been filed. As his Geist home faces foreclosure, Durham is living across the country in Los Angeles.