Recall it was almost one year ago to the day when we heard that all of Kathy Nealy’s financial troubles were the fault of the FBI? We posted photos of a similar Terrace House condo, unit 616, to the one Kathy Nealy lost to tax foreclosure last August — 2323 North Houston, Suite 216. Commenters gave me grief for saying the condo would sell for $300,000 to $350,000.
Well, they still may be right, but it hasn’t sold yet. A Realist AVM values the two bedroom, two bath unit somewhere between $242,865 and $396,253.
Kathy Nealy, John Wiley Price’s right-hand political consultant, was arrested Friday morning on Federal corruption charges along with Price, Dapheny Fain, Price’s chief of staff, and Christian Campbell, another consultant. (The news has made both The Washington Post and The New York Times.) Kathy lost her Victory condo to foreclosure last August 6. The fact that it has not sold yet is not terribly unusual, foreclosured properties can sometimes take awhile, especially with complicating factors. In the meantime, at least the value of the unit has increased from $263,120 to $287,040, according to DCAD.
Her attorney blames the sale on the June 2011 raid, which “negatively impacted” Nealy’s ability to do business. Prior to the raid Nealy counted among her clients American Airlines, Hunt Oil, KB Homes and Wal-Mart. She also worked for Mike Rawlings’ mayoral campaign, Bill Clinton’s presidential campaign and the Cowboys Stadium and American Airlines Center referendums, among other high-profile pushes. In a profile of Nealy that ran just after the raids, our Gromer Jeffers wrote that she “rose from being a struggling widow raising three children to one of the most sought-after consultants in Texas.”
Now we know why she was so sought-out! Wilonsky wrote that according to records on file with the county, “the Internal Revenue Service hit Nealy with a $256,711.34 tax lien in November, which is some combination of unpaid taxes, penalty and interest owed. The IRS doesn’t comment on these cases, except to say “it is possible for the actual tax to have been fully paid but for a balance due, consisting of penalty and interest, to remain.” Regardless, that’s down from the $459,000 the feds said she owed in July 2011.”
It looks like Nealy took out a mortgage for $352,800 with Morgan Stanley Credit Corporation in December of 2006, according to Realist. She also, at one time, must have owned a suite at American Airlines Center: Wilonsky found a “pending case involving Center Operating Company, which owns and operates the American Airlines Center. Center Operating sued Nealy in Dallas County District Court, claiming she owed $131,639.43 for a lower-level suite licensed in 2009. A motion for summary judgement filed in November 2011 upped that to $187,000 and change, plus $62.45 for every day the case went unresolved. Judgement was granted on December 20, 2011. The attorney who handled the case, Brian Vanderwoude, said Tuesday that Center Operating Client doesn’t comment on litigation involving suite-holders.”
Of course, it’s a real head-scratcher that with all the money the Feds allege she was making out of these consulting “deals”, she couldn’t pay her taxes and hang onto her house, in my humble opinion.
Here’s a similar unit, only on the 6th floor, same square footage as Kathy’s 1196 square feet in unit 216. Obviously the furnishings are not the same. This pup sold for $251,000 on June 16, 2012.
