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
Nadya Suleman is more popularly known as Octomom after giving birth to a set of octuplets. The babies were conceived via in vitro fertilization and came after Suleman already had six other kids while living on welfare. To raise money for her family, she has dabbled in a recording career. She has also made an attempt in the porn business, winning an AVN Award in 2013 for Best Celebrity Sex Tape for her feature Octomom Home Alone. Previous to that, her house n Madonna Lane in La Habra in California was foreclosed after she defaulted on its payment.
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
Terrell Owens was an American football player who played wide receiver for 15 seasons. A great player in his own right with his name etched on the top five all-time in receiving yards and touchdowns, his play however has been overshadowed by his flamboyance. He played for six NFL teams, the last of which was with the Seattle Seahawks in 2012. He was released, however, after only 20 days. He used to have four condominium units in Dallas and another one in Florida. Two of the Dallas properties and the Florida unit were sold via short sale, while the banks repossessed the other two.
7 R. Kelly: Property in Olympia Field, Illinois
R. Kelly is an R&B star responsible for hits like “I Believe I Can Fly” and “Bump n’ Grind.” He won three Grammy Awards in 1998 for the former. He attracted controversy, however, when he married a girl 12 years younger than him. Though the age difference was not really a problem, the issue however was the girl’s age, as she was only 15 at the time. Kelly’s property along Marcos Lane in Olympia Fields, Illinois first faced foreclosure in 2005. In 2011, J.P. Morgan Chase initiated foreclosure proceedings once again.
6 Burt Reynolds: Estate in Hobe Sound, Florida
Burt Reynolds is an actor and director known for his roles in the movies Smokey and the Bandit, The Longest Yard, Cannonball Run, All Dogs Go to Heaven and Boogie Nights. Back in the 90's, he filed for bankruptcy after failed investments in the restaurant scene in Florida. His waterfront estate along the Southeast Federal Highway in Hobe Sound, Florida was put up for a short sale of $5 million, $10 million less than the purchase price. Reynolds did not make mortgage payments amounting to $1.2 million for two years.
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
Allen Iverson is a former NBA player. He played for four different teams, though his biggest success was with the Philadelphia 76ers, which he led to an NBA Finals appearance in 2001, the same year he won Most Valuable Player honors. He finished his career in Turkey where he played for Besiktas. His sprawling property in Cherry Hills, Colorado encountered trouble after he stopped making mortgage payments for $2.6 million. The home was eventually sold for an amount slightly below its original asking price.
3 Chris Tucker: Mansion in Lake County, Florida
Chris Tucker is known as the fast-talking African American actor that starred with action star Jackie Chan in the Rush Hour series of movies, however, Tucker has fallen on hard times. He had the misfortune of buying a huge mansion in Lake County, Florida at its peak price just before the market collapsed. He owed $4.4 million, forcing Sun Trust Bank to file foreclosure proceedings. He was able to sell the property, but at way below its purchase price. To add to his woes, he still owes the IRS more than $11.5 million in taxes.
2 Evander Holyfield: Home in Fairburn, Georgia
Evander Holyfield is a former heavyweight champion of the world. He was involved in several memorable fights with the likes of Riddick Bowe and Mike Tyson. He is particularly remembered for getting part of his ear bitten off during his second clash with Tyson. Unfortunately, Holyfield was not able to make payments of $14 million for his home in Fairburn, Georgia along a highway that was named after him. J.P. Morgan Chase bought the property for less than half its actual value.
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.
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