Thursday, August 16, 2012

Foreclosure Woes Of The Rich And Famous



From Forbes:  “....We are seeing foreclosure activity on higher-end homes increase at a faster pace for the past two years,” says Daren Blomquist, vice president of RealtyTrac. From 2007 to 2011, foreclosure activity on homes worth more than a $1 million increased 489%, compared to a 105% increase on properties under $1 million, according to the Irvine, Calif.-based real estate information provider.

Some high-end homeowners, like comedian Chris Tucker, are facing foreclosure due to money woes. In October, Sun Trust Bank filed foreclosure papers alleging that the “Rush Hour” star owed $4.4 million on a 10,000-square-foot mansion in Lake County, Fla., that he purchased in 2007 for $6 million. It finally sold in a short sale earlier this year for a much lower price: $1.7 million. He also reportedly owes the IRS $11.5 million in back taxes.

Burt Reynolds, who’s had a history of money troubles, was hit last August with a foreclosure filing by Merrill Lynch Credit Corp. on his waterfront estate in Florida. The actor has not paid his $1.2 million mortgage since September 2010.  Boasting 12,538-square feet, a helipad and yacht dockage, the Hobe Sound compound is currently listed as a short sale for $5 million, a $4 million price chop since foreclosure proceedings began a year ago.

In some cases, wealthy deadbeats have gotten a reprieve because lenders have taken longer to begin the foreclosure process, reticent to repossess a property that will require more money and time to sell ……

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