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Bank Says It Accidentally Sold the Wrong Loan to Agoura Hills

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Agoura Hills officials were "giddy" in March, according to the Acorn, when the city picked up 71 acres of unincorporated LA County that it's been coveting for years. It didn't just get the land, it got it on the super cheap too, paying $630,000 for a property that was expected to go for about $2 million. According to the Jewish Journal, the Heschel West school bought the land in 1997 for $1.6 million and planned to build a nine building campus on 21 acres. Low-density housing had previously been approved for the land, and the city went to war with the school. The County eventually approved the school's plans, but the economy tanked the campus anyway. The land went up for auction on March 18, and Agoura Hills was the only bidder. They got a deed and everything. Now mortgage holder US Bank wants backsies, saying they accidentally auctioned the wrong loan, according to the Acorn: "From all accounts, the bank appears to have mistakenly taken a cheaper second loan to auction not knowing that when it sold, it would wipe out the bank’s first, more expensive loan and give the buyer—in this case Agoura Hills—a clearly unbelievable deal." So now the bank wants to put the $2 million first loan, which they say is still active, back up for sale, and Agoura Hills is prepared to sue if they do. If the city manages to hold onto the land, they'll consider keeping it as open space. [Image via the Jewish Journal]
· Mortgage flub puts Heschel property sale in doubt [Acorn]