High-end Foreclosures

By: Kevin Bilberry

With 1 in every 483 households in the U.S. facing foreclosure, it only stands to reason that us common folk aren't the only ones affected by the housing crisis. It's just as easy to create a mountain of debt by borrowing against a multi-million dollar estate, as it is for a moderately priced home. Here are some of the celebrities added to the country's growing list of foreclosures.

Sadly Ed McMahon, former Tonight Show announcer, is facing foreclosure for $4.8 million dollars of mortgage loans on his Beverly Hills estate. Plagued with bad press, this luxury home overlooking Coldwater Canyon and Mulholland Drive has been up for sale for $6.25 million for the last two years. Initially McMahon faced problems due to mold infestation which he claimed killed his dog and affected the health of both him and his wife. Then he fell and broke his neck and was out of work for 18 months. How would any of us deal with a back mortgage and loans totaling $4.8 million after being unemployed that long? Ed, take this as a sign, maybe it's time to down size and retire.

Evander Holyfield, former heavyweight boxing champion is facing foreclosure on his Atlanta, Georgia estate. This 104-room, 54,000 square-foot home worth approximately $10 million, goes up for auction on July 1.

Jose Canseco, former major league baseball player recently lost his 7,300 square foot home in Encino to foreclosure. As he stated, "It didn't make financial sense for me to keep paying a mortgage on a home that was basically owned by someone else." He didn't mention how much the home was actually worth, but he owed the bank $2.5 million on the house.

Michael Jackson - In 2007 after borrowing against it, to the tune of $23 million, the ranch valued at only $6 million faced foreclosure. Recently, however, a private equity group bought the loan on Neverland Ranch and is discussing the option of a Las Vegas casino gig as repayment.

In May of 2008, the $600,000 home of NBA star Latrell Sprewell went into foreclosure. This came only months after his 70-foot yacht, "Milwaukee's Best" was also repossessed. Sorry Latrell, maybe you shouldn't have turned down the $21 million contract extension Minnesota offered you.

Grammy Award-winning Aretha Franklin received a notice of foreclosure against her Detroit mansion after failing to pay a $162.14 tax bill dating back to 2005. Last we heard, the bill was cleared up.

Veronica Hearst, step mother of SLA hostage Patty Hearst, faced foreclosure on her 28,000 square foot, 52-room villa in Palm Beach. Her defaulted mortgage payments totaled about $33,000,000. It's hard to believe the deficit was allowed to get that high before the bank stepped in.

Nicole Murphy was unable to make payments on the 11,158 square foot mansion she was awarded in her 2006 divorce settlement from Eddie Murphy. Last October the house was put on the market for the bargain price of $6,500,000.

Foreclosures
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