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Lenny Dykstra's Former Mansion Is Sold

The hilltop mansion that Lenny Dykstra bought from Wayne Gretzky for $17.5 million in 2007 has been sold to an unnamed buyer for an undisclosed amount.

Lenny Dykstra
Jamie McCarthy | WireImage | Getty Images
Lenny Dykstra

The home was sold by Jeff Smith of Index Investors, the second lienholder, who bought the country club estate out of foreclosure last fall.

Smith moved to foreclose on Dykstra in the summer of 2009 after claiming he had loaned the former World Series champion around $600,000. He said Dykstra had paid none of the money back and also owed hundreds of thousands of dollars in interest.

Dykstra claimed he was the victim of mortgage fraud by Washington Mutual, now owned by Chase , which provided the $12 million first mortgage. To avoid foreclosure, Dykstra filed for Chapter 11 bankruptcy protection, which the court later converted to Chapter 7 liquidation. He later sought millions from insurer Fireman’s Fund for water damage to the home, tearing up flooring and fixtures to try to prove it.

Here is video of the homein better days.

Here is video of the home after Dykstra tried to prove water damage.

Jeff Smith’s attorney previously said he would be working with Chaseon terms for splitting the proceeds of a sale.

While the house was previously on the market for $10.5 million, less than the first mortgage, sources say Smith made out very well in the transaction.

Here is the extensive interview Dykstra did with CNBC in July 2009, the day after he filed for bankruptcy.

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  • Diana Olick serves as CNBC's real estate correspondent as well as the editor of the Realty Check section on CNBC.com.