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Bayshore, NY home in bankruptcy

Here's one for the book, or maybe one for Guinness World Records to consider.

Half of a Bayshore, N.Y. house, assessed at about $300,000, is set for auction Oct. 7.

A complicated bankruptcy means half of the Long Island house will be auctioned off-and the 81-year-old widow living there is part of the deal, the New York Post reports.

For decades, Joan Fleming has lived alone in a modest Bayshore ranch home. She reportedly transferred the title of the Lombardy Boulevard address to her two children, but things became complicated after son Michael, 49, declared bankruptcy in April.

His share of the home is expected to be auctioned off to the highest bidder Oct. 7. Here's the twist:  Mrs. Fleming can live in the house alone until her death.

And, if that's not enough, sources tell the Post that any buyer of the son's share can't move in -- even if Ms. Fleming dies -- without striking a deal with his sister on payment of an outstanding $66,000 mortgage.

"If they can't reach an agreement on the mortgage, the buyer would have to litigate in order to sell the home," according to the Post.

Auctioneer Richard Maltz says he can't get inside the home to see what will be on the block.

Although the site will likely be sold at a steep discount, this is a deal only for sophisticated investors, Maltz tells The Wall Street Journal.

"Basically it's not going to produce any return on investment until the life tenant, the woman living there, passes away," he says.

"It's kind of a morbid thing to be betting on, but the longer she lives, the lower the rate of return on your investment."

 

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