Celebrities Who Lost Their Homes to Foreclosure
Being a celebrity does not guarantee that you will never face financial issues. Too often, celebrities who earn millions during the height of their career either squander their riches on a lavish lifestyle or suffer financial difficulty due the mismanagement of their income by others they may have trusted. These celebrities have all lost a home to foreclosure due to financial issues.
Despite reports that his net worth is around $25 million, Nicolas Cage is no stranger to foreclosure. In July 2009, two homes owned by Cage in New Orleans, worth almost $7 million, were sold in foreclosure auctions. That same year, a 14,300-square-foot home in Las Vegas was sold at a foreclosure sale for almost $5 million. In 2010, a 1940s Tudor mansion in Bel Air, previously the home of singers Tom Jones and Dean Martin, was sold at a foreclosure sale for $10.5 million. Cage blamed mismanagement by his former business manager, Samuel Levin, for mismanaging his finances and filed a lawsuit for $20 million. Levin countersued claiming that it was Cage’s lavish spending that caused his financial difficulties. Both lawsuits were dismissed in 2010.
In February 2015, 1970s teen heartthrob, David Cassidy, who gained fame as the start of the hit television series “The Partridge Family,” filed for bankruptcy. As part of his bankruptcy proceedings, Cassidy requested permission to auction his home in Fort Lauderdale, which is valued at $1.9 million. The home will be auctioned on September 9. In 2012, Cassidy fought foreclosure on a penthouse apartment in Fort Lauderdale, but eventually agreed to turn the apartment over to the bank.
In 2012, boxer Evander Holyfield’s Georgia mansion was sold at a public auction, purchased by a bank for $7.5 million. Holyfield claimed in court records that the home cost more than $1 million to maintain annually and that the electric bill for the property was as much as $17,000 per month. In February 2014, rapper Rick Ross purchased the home for $5.8 million. The home has 109 rooms with 12 bedrooms and 21 bathrooms, a bowling alley, home theater and a 350,000 gallon pool. There is also a baseball field with lights and scoreboard, indoor pool, recording studio and a seven-stall barn. Much of Holyfield’s financial woes stem from child support cases. The boxer has 12 children with six different women.
Despite earning more than $150 million in his pro-basketball career, Allen Iverson lost a home in Colorado to foreclosure in 2012 after reports of alcohol abuse, marital problems and a gambling addiction led him to playing his sports overseas. In 2013, the basketball player lost a second home in Atlanta to foreclosure after Iverson defaulted on a $1.2 million mortgage.
In March 2013, the Chicago mansion owned by singer R. Kelly was purchased by the bank that held the mortgage for $950,000, considerably less than the $5 million it was worth. According to Kelly, the value of the home dropped considerably during the housing crisis and the bank refused to work with him on a loan modification, forcing him into foreclosure. In December 2013, Rudolph Isley, founding member of the Isley Brothers, purchased the home for $587,500. According to reports, the property was stripped of items such as kitchen cabinets, counters and light fixtures, requiring extensive renovations before the Isley’s move into the mansion. They purchased it in order to live closer to their children and grandchildren.
In 2012, Rihanna sold her Beverly Hills home at a short sale, claiming that the home leaked. She sued the developer, her real estate agent, inspectors and others that same year. The home was listed at $4.5 million, although the singer paid $6.9 million for it in 2009. It was sold on December 30, 2012 for $5.03 million.
In 2011, JaMarcus Russell, former quarterback for the Oakland Raiders, came close to losing his Oakland mansion to foreclosure, until an unnamed buyer purchased the home from him for $1 million, much less than the $2.4 million Russell paid for it in 2007. Russell was a first round draft pick for the Raiders in a year where Calvin Johnson, Adrian Peterson and Darrelle Revis were drafted. However, although an excellent quarterback in college, Russell never blossomed as a quarterback in the NFL. He was cut by the raiders in 2011 after he showed up at camp overweight and out of shape.
Chris Tucker’s $6 million Florida home went into foreclosure in 2011. According to court documents, there was an $11.5 million lien on the home from the IRS. In December of that year, Tucker sold the property in Lake County for $2 million, which the bank accepted, despite the fact that Tucker owed $4.4 million on the property. Tucker sold another Florida home in October 2011 for just over $1 million, less than his asking price of $1.5 million.
As these stories demonstrate, even wealthy individuals can sometimes face financial difficulty. If you would like to learn more tips to organize your finances and avoid these types of problems in your own life, complete the simple contact form and schedule an appointment.