In 2007, the economy began to decline in a recession. It rapidly got worse the following year and by 2009, the entire world had been affected. The housing bubble in the United States, which peaked merely three years earlier, finally burst, with the value of securities related to real estate falling drastically. Financial institutions around the world fell like like a house of cards, and a credit crisis arose.
The bad news does not end there. Up until now, the housing market is still in trouble. Up to one-fourth of all mortgaged houses in the United States have negative equity, meaning that the homes actually have a lower value than the mortgage issued. As a result, up to 12 million homeowners are still considered as 'underwater'.
It has become so bad that there were homes in Michigan that were recently being sold for as low as one dollar. If you think that only ordinary people are affected, then think again. Not even the rich and famous have been spared from the housing crisis. A number of them have encountered foreclosure proceedings already. While some have avoided actual foreclosure, there were others who were not so fortunate. Here is a list of the top 10 rich and famous with the houses that unfortunately got hit by the recession.
10 Nadya Suleman: House in La Habra, California
9 David Cassidy: Penthouse in Fort Lauderdale, Florida
Back in the 1970's, David Cassidy was considered as one of the teen idols. His youthful good looks were featured in the television series called The Partridge Family. He also had some success in the music industry, producing mild hits like “The Last Kiss,” “Lyin’ to Myself” and “No Bridge I Wouldn’t Cross.” He also appeared in several theater productions. Cassidy used to own the penthouse unit at the Las Olas Riverhouse in Fort Lauderdale, Florida. The recession, however, forced him to default on his payments. Rather than going through foreclosure, he decided to just surrender the property to the bank.
8 Terrell Owens: 4 Condo's in Dallas and one in Florida
7 R. Kelly: Property in Olympia Field, Illinois
6 Burt Reynolds: Estate in Hobe Sound, Florida
5 O.J. Simpson: Home in Miami, Florida
O.J. Simpson used to have it all. He was a legendary player that achieved tremendous heights of success in both college and professional football. He was a popular celebrity endorser, and was even part of the hit comedy film called Airplane. He had successfully broken the color barrier, as both whites and blacks accepted him as one of their own. Then in the mid 90's, he was involved in a gruesome double murder case that captivated the nation. Though he was subsequently acquitted courtesy of his impressive team of lawyers, his life has never been the same again. He faced several civil suits. He has also been jailed for armed robbery. Financial woes have also hounded him, with his home in Kendall in Miami, Florida undergoing foreclosure procedures.
4 Allen Iverson: Property in Cherry Hills, Colorado
3 Chris Tucker: Mansion in Lake County, Florida
2 Evander Holyfield: Home in Fairburn, Georgia
1 Rihanna: Property in Janice Place, Beverly Hills
Rihanna is one of the sexiest singers around. She is known for her distinctive voice that has given us hits like “Umbrella,” “Diamonds,” “We Found Love,” “Only Girl” and “Man Down.” She is also known for her on and off relationship with fellow singer Chris Brown. In 2009, she bought a huge property in Janice Place, Beverly Hills for $6.9 million. Flooding, however, damaged the house and she was forced to list it for only $4.5 million. although a buyer eventually bought it for a higher amount, Rihanna never got to recover her original investment.