Financial problems happen to the best of us, and by “best,” we mean “richest.” Making millions of dollars is not necessarily the end of money issues. It’s important to know how to properly manage your funds if you’re going to be wealthy for a considerable period of time. Unfortunately, it takes some celebrities a while to understand this principle.
Most people think that making three or four times more than their current salaries would translate into a paid mortgage, the elimination of car payments, and fancy shopping sprees on a regular basis. While we often see celebs enjoying these financial perks, there are times in which a celebrity’s home has to be repossessed. Of course, the reasons for a famous person’s money problems are just as varied as those of “commoners.” Some celebs are too busy partying and trying to impress their friends with their new wealth, they fail to notice when their monetary affairs are in serious trouble. Some famous people come from poverty, and are so excited to live a luxurious life that their spending gets out of control. Others are taking care of family members financially while neglecting their own monetary responsibilities. There are some instances in which financial issues get so serious that major items and investments sometimes have to be repossessed. Here are 10 celebrity homes that went from celebrity property to mortgage lender property.
10. Burt Reynolds
The veteran actor who is perhaps best known for his role in Smokey and The Bandit didn’t pay the mortgage on his home for two years. The property mortgage was worth $1.2 million at the time. The home was short-sold to the tune of $5 million, which is a third of the price that Reynolds purchased the home for. The home has yacht dockage, a helipad and is 12,500 square feet. The property is on the water and has a lot of space for a large family. Unfortunately, Burt Reynolds couldn’t keep up with the payments for this beautiful home, so it’s likely that someone else is enjoying it now.
9. Terrell Owens
Football player Terrell Owens had two condos repossessed in the Dallas, Texas area. The properties were located in the Azure and Commerce Street communities, and once the lenders started the foreclosure process, both properties were sold in a short-sale. Owens also previously owned two additional properties that were repossessed by the lenders of the residences. One of the properties was in the Trump International building. It was reported that the athlete failed to make both his mortgage payments and the maintenance fees associated with keeping the luxury apartment intact. In more recent years, Terrell Owens has been making strides to repair his life, which includes better money management.
8. Evander Holyfield
The retired heavyweight boxer had a pretty large piece of property in the southern suburb of Fairburn, Georgia. Unfortunately, Holyfield owed more than $14 million on the property. The home is 54,000 square feet, and was repossessed by JP Morgan Chase bank for about half of the home’s value. The bank was nice enough to allow Holyfield and his family to stay in the home for a few months after the repossession of his 109-room estate. Looks like the boxing match in 1997 in which Evander Holyfield’s ear was nearly chewed off by Mike Tyson, wasn’t where his streak of bad luck ended.
Rihanna is known for a lot of things, but money problems and repossessions usually aren’t on the list. The singer seems to have gotten things right back on track after making a short-sale for her $6.9 million home that she purchased in 2009. When the home sustained flood damage, the 8,250 square foot property was listed for $4.5 million, as is. Rihanna ultimately defaulted on the home and the property was up for short sale. Things ended up working out for the pop and R&B diva, since the person who purchased the home paid well more than the asking price.
6. David Cassidy
David Cassidy is perhaps best known for his role in the hit TV series The Partridge Family. After achieving success in the 1970s, David Cassidy was still seen on television and made quite a name for himself in the music world. However, his feathered tresses and winning smile weren’t enough to get him out of foreclosure. Cassidy had a penthouse in the Las Olas Riverhouse subdivision of Fort Lauderdale. The singer and actor wasn’t able to keep up with the payments for the property. So instead of trying to continue with the payment process, David Cassidy decided to give the penthouse back to the lender instead of continuing with the foreclosure.
5. Chris Tucker
The Rush Hour actor and comedian’s home was sold on short-sale. The property is in Lake County, Florida, and is 10,000 square feet. Tucker purchased the home when it was at the highest asking price, and ended up owing $4.4 million on the property, according to SunTrust bank. Chris Tucker was also in the news for his tax issues. He reportedly owed $11.5 million to the IRS in back taxes. Sounds like yet another case of poor money management. Since it doesn’t seem like there will be a Rush Hour movie reprisal any time soon, we’re hoping Tucker can get some substantial movie or stand-up comedy gigs to eliminate his money issues soon.
4. Nadya Suleman
Nadya Suleman became a household name when she was given the nickname “Octomom” for birthing octuplets. There are a number of theories surrounding the reasons why Suleman gave birth to eight babies at one time, especially considering the fact that she already had children. The pressure of taking care of so many children at once eventually got to Suleman, and she was forced to give up her Orange County home. The property is 2,445 square feet, and the bank repossessed the home after it was put up for auction and no one bid on it. The reality television star, mother and adult film actress ended up filing for Chapter 7 bankruptcy.
3. Toni Braxton
The award-winning singer has seen her songs go to the top of the charts since the 1990s. She recently even won a Grammy for her duet album with R&B singer and producer, Babyface. However, even a musician as popular as Toni Braxton has seen her share of financial troubles. She had to file for bankruptcy protection twice, most recently in 2010.
Braxton, who suffers from lupus, had to cancel some of her shows during her Vegas residency due to complications with her illness. Since she’d already signed a contract to perform a certain number of shows, she had to make up the cost for the shows she couldn’t perform in. As a result of this financial strain, Toni Braxton faced foreclosure on her Georgia home. This occurred in 2011, when a judge ruled that the bankruptcy protection she’d filed the previous year wouldn’t stop the foreclosure process.
2. O.J. Simpson
The famed football star who is now a convicted felon had a lovely home in Miami. After O.J. Simpson was acquitted for the murders of his ex-wife and her friend, he purchased the 4,200 square foot home. After the home purchase, O.J. Simpson faced a considerable amount of financial trouble, including civil suits and foreclosures. The former athlete is now serving time for an armed robbery committed in 2007. His Miami property is in pre-foreclosure, so it looks like Simpson will have more serious financial problems on his hands after his release from jail. If he doesn’t get his financial affairs in order, he may never truly be a free man.
1. R. Kelly
The R&B singer, songwriter and producer has definitely had his share of negative media exposure and trouble with the law. Unfortunately, this unfavorable attention has also made the public aware that his Chicago home was slapped with a foreclosure by J.P. Morgan Chase. The home became a short sale listing and was priced at about 45% less than the mortgage note. The listing was later pulled, and the current status of the home is unknown. This isn’t the first time this Chicago property was placed under foreclosure. The second foreclosure incident was in 2011, but six years before, the creative crooner was in the same type of financial trouble.