8 Celebrities Who Faced Foreclosure

  • Celebs: They're Just Like Us

    According to RealtyTrac, almost 3 million residential properties were sent foreclosure notices in 2010. And it's predicted that the numbers will rise by as much as 20% in 2011. It seems that housing bubble hasn’t stopped bursting. It's not just regular folk who are losing the keys to their homes, either. Some celebrities have run into trouble paying their bills, and nonpayment has led to foreclosure actions for some surprisingly A-list (and, admittedly D-list) actors, athletes and pop stars. Among them, there are those who really can’t make their mortgage payments, some have gone the “strategic default” route – giving up their homes to cut their losses - and a multitude of other financial missteps that have led to star-powered foreclosures. In many cases, we were just as surprised as you’ll be by some of the names on this list of celebs who have lost their homes. Photo Credit: Jeff Turner
    Nicolas Cage
  • Nicolas Cage

    Perhaps the most talked-about celebrity real-estate problems belong to this Academy Award winner, whose tastes certainly skew towards the extravagant.  At one point he owned 15 personal residences, including several European castles and the “most Haunted House in America,” as well as a Gulfstream jet, numerous yachts, and 30-50 luxury automobiles.  He also outbid Leonardo DiCaprio in 2007 for the skull of a Tarbosaurus (it’s a dinosaur) for which he shelled out $276,000. Four of his homes have gone into foreclosure since 2007. Photo Credit: Nicolas Genin
    Nicolas Cage
  • Nicolas Cage

    The thing with celebrities is that very often, rather then taking out a mortgage to buy a property, they purchase luxury homes via trusts and “straw buyers” which can keep the address of the celebrity somewhat private, but can also involve liens and complicated lawsuits. This is what got Cage into trouble (helped along, he claims, by bad advice from his former manager Samuel J. Levin, who he has sued, alleging negligence and fraud). The Bel Air home Cage purchased in 1998 from singer Tom Jones (and formerly owned by rat-packer Dean Martin) for $6.5 million was repossessed in 2010. The impressive property at 363 Copa De Oro Road, Los Angeles, Calif., was refinanced and borrowed against several times to the extent that, according to Public Records, over $17 Million was owed on it. It was listed for sale in 2006 for $35 million and was finally sold in November 2010 by Citibank (after a failed attempt to sell at an April auction) for $10.5 million. Photo Credit: Nicolas Genin
    Nicolas Cage
  • Nicolas Cage

    Cage also went into foreclosure on his Las Vegas home in early December 2010, following the announcement that he owed the IRS more than $6.6 million in back taxes dating back to 2002. Cage purchased the mansion, located at 5100 Spanish Heights Dr, Las Vegas, for $8.5 million in September 2006 and, according to the Las Vegas Sun, it sold for about $4.95 million after one day on the market. But it's on the market again for $7,910,000. The 14,300-sq ft home has a sweeping staircase, 16-car subterranean garage, an elevator, theater room, six bedrooms, seven and a half bathrooms and a panoramic view of the Las Vegas Strip. The home is listed with Zar Zanganeh of LUXE Estates Collection. For more information, contact Zar Zanganeh (702-400-0645) or visit the website. Photo Credit:  Luxe Estates Collection
    Nicolas Cage
  • Nicolas Cage

    In November 2009, Cage lost two New Orleans homes to foreclosure - his historic French Quarter mansion at 1140 Royal Street (the LaLaurie Mansion – the “Most Haunted Home in America”) and 2523 Prytania Street in the Garden District.  According to public records, Regions Bank of Birmingham, Ala., paid $2.3 million for the Royal Street property (appraised at $3.5 million) and $2.2 million for the Prytania Street home (appraised at $3.3 million).  While Cage blames his former financial manager for all the trouble, Levin filed a counter-complaint against Cage. Meanwhile, he is the one of the highest paid actors in Hollywood.  Go figure – more money, more problems. Photo Credit:  adrigu
    Mel Gibson
  • Mel Gibson

    Another A-list actor who has been in the news for other personal missteps (i.e. - a 2006 DUI incident in which he made anti-Semitic remarks to the arresting officer and a 2010 restraining order filed by the mother of his child) is also in too deep with his real estate payments. He is facing foreclosure on three of his properties in Malibu, Calif., including his own church. Photo Credit:  Alan Light
    Timothy Busfield
  • Timothy Busfield

    Divorce can certainly be expensive – and has played a role in sending many actors  into debt.  The one known best for his role as the unfaithful Elliot Weston on "Thirtysomething" and as the White House correspondent Danny Concannon on The West Wing reportedly owes his financial woes to a pricey 2007 divorce. He bought the property on 24757 Rotunda Mesa Road in Malibu California for $1.25 million in October 2003 and had his property repossessed in January 2011, according to Forbes. Photo Credit: Associated Press
    Allen Iverson
  • Allen Iverson

    Professional athletes have had epic real estate trouble as well. In March of this year, former NBA All-Star Allen Iverson went into foreclosure on his mansion in Cherry Hills – a suburb of Denver, Colorado. After reports of alcohol abuse, gambling, and marital problems, Iverson failed to receive an offer from a National Basketball Association team, and signed with Besiktas of the Turkish League. According to The Denver Post, Iverson bought the 10,445 square-foot six-bedroom, nine-bathroom spread for $3.875 million in January 2008, and let the property in the Buell Mansion subdivision slip into foreclosure on an outstanding balance of $2,572,914 owed to Wells Fargo Bank. Photo Credit: Keith Allison
    Allen Iverson
  • Allen Iverson

    The 9 Sandy Lake Road property includes an extensive security system, gourmet kitchen, safe room, open media area, wine room, seven gas fireplaces, outdoor play area, and lake views. He first listed the home for sale in April 2009 for $3,750,000 — nearly $1 million less than the sale price of $2,850,000 (it is currently under contract). For more information, contact Nancy Clendenin (303-915-9544) or visit the website. Photo Credit: Nancy Clendenin/Kentwood Real Estate
    Michael Vick
  • Michael Vick

    The quarterback for the NFL’s Philadelphia Eagles lost his eight-bedroom, 20,000 square-foot home in Gwinnett County near Atlanta in a bank auction. Vick previously played for the Atlanta Falcons until he was sentenced to 21 months in a federal penitentiary and two months of home confinement under the terms of his plea bargain for running a dogfighting operation.  While incarcerated and released from his contract with the Falcons, he filed for bankruptcy and sold off assets to pay off his debts. Things are looking up for Vick now: In 2010, he made $5.25 million and will make an estimated $20 million -- the average salary of the five highest-paid quarterbacks in the league -- as the Eagles' franchise player. Photo Credit: Ed Yourdon
    Plaxico Burress
  • Plaxico Burress

    Plaxico Burress, the former New York Giants receiver, is facing foreclosure on his Lightpoint, Fla. home. According to public records, he owes more than $250,000 to creditors American Home Mortgage Investment and Deutsche Bank National Trust. He and his wife bought the 6,872-square-foot waterfront home at 2249 N.E. 26th Street for $4 million in 2005. His financial woes have coincided with some legal trouble, according the The New York Post. In September 2008, Burress signed a five-year, $35 million deal with the Giants after catching the winning touchdown in the 2007 Super Bowl. Two months later, he shot himself in the leg in a Manhattan nightclub while fumbling with an unregistered gun in his waistband. The team dropped Burress in April, costing him the $27 million left on the contract. He pleaded guilty last August to attempted criminal possession of a weapon and in September was sentenced to two years in prison. With good behavior, he could get out in June 2011, but he'll have no home to return to. Photo Credit: Ted Kerwin
    More athletes
  • More athletes

    Sadly, there are too many professional athletes who have lost their homes to detail here. They include retired hockey star Sergei Fedorov (lost two homes in the Detroit suburb of Bloomfield Hills, Mich. in the past year) and former pro baseball slugger, Lenny Dykstra (walked away from two Thousand Oaks, California homes in the past two years). In most cases defaulting celebrities have tried to sell their homes the old-fashioned way. When the homes haven't sold, they've pulled the listings and just stopped making the loan payments. That was the case with former basketball great Julius "Dr. J" Erving. And former baseball player and admitted steroid user Jose Canseco just walked from a $2.5 million, 7300 square foot home because, he said, it didn’t make financial sense to keep paying the mortgage. Photo Credit: Colleen McNeil
    Toni Braxton
  • Toni Braxton

    Some pop singers have tripped down some rocky financial roads as well. This six-time Grammy-winning lost her Las Vegas-area home, which she bought for $2.6 million in 2007. It sold for $1.06 million in September 2010 as a foreclosure. She's also facing the potential loss of her Duluth, Ga. Sugarloaf Country Club community home after a Los Angeles bankruptcy court lifted the ban protecting the property in January 2011. Photo Credit: Jan Tik
    Toni Braxton
  • Toni Braxton

    The singer whose hits include "Un-Break My Heart" and "You're Makin' Me High," listed unpaid debts of at least $50 million and assets between $1 million and $10 million in her 2010 bankruptcy filing. She had previously filed for bankruptcy in 1998 and the IRS filed a $396,000 tax lien against her in 2010. She still owes the full value of the $1.5 million property in Duluth, Ga. Photo Credit: Keith Hinkle
    Hakeem Seriki
  • Hakeem Seriki

    The hip-hop artist and Grammy-winner better known as Chamillionaire strategically defaulted on his Houston-area home last summer. He said publicly that personal matters, including his mother’s fight with cancer and the birth of his son, motivated him to let the foreclosure go through. Photo Credit: Kevin Krejci
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