Celebrity Foreclosure

Celebrity Foreclosure

I always stress in my blog posts that if you’re going through a Michigan foreclosure, you’re not alone. I’ve realized that saying that doesn’t really help, though, if you don’t actually know anyone else in your shoes. So this post is for those of you who still feel alone in their Michigan foreclosure situation. Foreclosure can happen to anyone – even the rich and famous.

You might think that if you have all the money in the world you could do just about anything – including stopping the bank from foreclosing. This is not always true, though, because the same things that cause you, the average person, to default on your mortgage also happen to celebrities.

Divorce: Victoria Gotti, daughter of mobster John Gotti, purchased her Long Island house in 1989 for $175,000. She now owes $650,000 and reports say that she hasn’t made a payment in quite a while. Apparently, she has not been able to afford the house since her divorce. This is quite common. Two people can afford a mortgage, but when they split, it is often unreasonable for one person to keep the house. The logical answer would be to sell the house, but when you owe more than it’s worth, you’ll have to bring cash to closing (which most people can’t do.)

Gotti Mansion

Gotti Mansion

Job Loss: Adam “Pacman” Jones of NFL fame went into mortgage default when he was suspended from playing without pay. When you bought your house, you probably weren’t expecting a recession (I know I wasn’t!) which means you probably weren’t thinking about job security. Unfortunately, the economic climate got stormy and many people are left without employment.

Adam "Pacman" Jones Humble Abode

Adam "Pacman" Jones Humble Abode

Failed Businesses: In 2005, ABC built a brand new, $450,000 house for the Harper Family on their show “Extreme Home Makeover.” The house was given to them at no cost. The family, however, took out all of the equity to fund a construction business that ultimately failed. They were unable to pay back the equity loan, and the house went into foreclosure. We turn again to the financial crisis, which is making it hard for many businesses to stay afloat.

Harper Family’s Extreme Makeover House

Harper Family’s Extreme Makeover House

Death: Veronica Hearst defaulted on the mortgage of her 52 room mansion after the death of her husband, Randolph Hearst (successor of publishing giant Hearst Corporation.) The death of a loved one is hard enough to deal with without also having to deal with foreclosure.

Villa Venezio – Veronica Hearst’s House

Villa Venezio – Veronica Hearst’s House

Disability: Ed McMahon defaulted on the loan of his $4.8 million dollar house in 2006, when the 85 year old fell and broke his neck. He was unable to work, and therefore could not come up with the princely payments.

Ed McMahon’s House

Ed McMahon’s House

If you are facing a hardship, such as the ones listed above, and have realized that you can no longer afford to keep the house, give Emily a call at (269) 685-5921. We help people facing difficult times every day, and are well versed in letting you know what your options are. If your best option is a short sale, we’ll do everything in our power to make it as painless as possible.

Holly

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