Celebrities Flirting with Foreclosure

March 24, 2011

As the housing market continues to deliver news of doom and gloom, it is apparent that no one is safe from falling behind on mortgage payments and possibly slipping into foreclosure, including the sports stars and movie stars we follow. We’ve compiled a list of celebrity homeowners, that varies from A-listers and retired athletes to reality TV stars, who have all danced with foreclosure over the past year.

Mel Gibson

While Charlie Sheen is currently raiding the airwaves with shocking comments and tales of his outrageous lifestyle, last year’s celeb making news for all the wrong reasons was Mel Gibson. Amidst his ongoing legal and custody battles, his real estate portfolio has taken quite a hit. First up was Gibson’s 75-acre Greenwich, CT estate, which first hit the market in 2007 for $39.5 million, took a price cut to $35 million a few months later, then finally sold in July 2010 for $24 million – 40 percent less than the initial asking price. Next is Gibson’s Lavender Hill Farm property (pictured above) located in Malibu, CA. Gibson listed the four-building estate in March 2010 for $14.5 million. A year later, it is still on the market with a reduced asking price of $12.75 million.

Gibson’s four properties in Malibu, including Lavender Hill Farm, two additional residential properties and a church, are unfortunately facing a worse fate than selling for a loss. In September 2010, TMZ reported that Rampage Construction, the company contracted to work on the actor’s Malibu real estate investments, filed a lawsuit against Gibson and former wife, Robyn, for failing to settle an outstanding $12,000 bill. Rampage Construction filed another lawsuit against A.P. Reilly Foundation (the company that owns Gibson’s church) to pay up on an outstanding $200,000 invoice. Both lawsuits demand payment or placing the properties in foreclosure.

Allen Iverson

Former NBA All-Star-turned-Turkish basketball player Allen Iverson quit paying his mortgage and let his 6-bedroom, 6-bathroom home in Cherry Hills, CO slip into foreclosure. According to the Denver Post, Iverson’s Cherry Hills mansion (pictured above) had an outstanding balance of $2,572,914 owed to Wells Fargo Bank. Luckily a buyer was found for the 10,445-sq ft home and a sale is expected in early April with a final sale price close to the current asking price of $2.85 million. However, despite finding a buyer, Iverson is still responsible for attorney fees, foreclosure costs, and default interest.

See the Full Story at Zillow.com:

10 Celebrities Flirting with Foreclosure