Far out Friday: Celebrities who've defaulted

by Mackenzie McCarty12 Jul 2013

With reports constantly coming out describing depressing mortgage delinquency rates in various parts of the country, it’s nice to know the issue isn’t limited to us mere mortals. Celebrities have their fair share of financial troubles too, apparently and Forbes has kindly put together a list of famous faces who have defaulted on their home loans.

While we may feel sorry for them (all but number six, that is), we must admit to experiencing a teensy bit of good ol’ fashioned schadenfreude...

1. Burt Reynolds

Property: Southeast Federal Highway, Hobe Sound, Florida

The Smokey and the Bandit star has allegedly not paid his US$1.2 million mortgage in two years. At time of writing, it’s listed as a short sale for US$5 million - a third of his purchase price. The waterfront estate boasts 12,500 square feet (3,810m), a helipad and yacht dockage.


2. Rihanna

Property: Janice Place, Beverly Hills, California

In 2009 the pop star bought a $6.9 million 8,520-square foot home and then flooding caused ‘extensive damage’, according to its subsequent listing for US$4.5 million, as is. The singer defaulted on the home, selling it as a short sale earlier this year to a buyer who ultimately paid more than the asking price.


3. Chris Tucker

Property: Bella Collina manison, Lake County, Florida.

In October, Sun Trust Bank filed foreclosure papers alleging that comedian Chris Tucker owed US$4.4 million on the 10,000-square foot (3,048m) mansion he had purchased at the market high. It finally sold in a short sale earlier this year. The Rush Hour star also reportedly owes the US tax department US$11.5 million in back taxes.


4. David Cassidy

Property: Las Olas Riverhouse penthouse, Fort Lauderdale, Florida

Cassidy, who ascended to teen stardom in the 1970s TV show The Partridge Family, reportedly surrendered a swank rental property to the lender, rather than continue through the foreclosure process.


5. Nadya "Octomom" Suleman

Property: Madonna Lane, La Habra, California

The foreclosure process on the 2,445-square foot (745.24m) house of the reality TV star was finalised with the bank repossessing the property in an auction that produced no bids. The first default notice was filed on the Orange County abode in late 2011. Suleman, who became a household name after giving birth to octuplets, filed for Chapter 7 bankruptcy in soon after.


6. O.J. Simpson

Property: SW 112th Street, Miami, Florida

The football star-turned-convicted felon, purchased this 4,200-square foot (1,280m) home after famously being acquitted for the slayings of his ex-wife and her friend. Simpson has faced civil suits and subsequent financial woes, the foreclosure filing among the latest. The home is currently in pre-foreclosure.


7. R. Kelly

Property: Marcos Lane, Olympia Fields, Illinois

The R&B artist's custom-built 22,000-square foot (6,705m) Chicago-area mansion was slapped with a ‘lis pendens’ (suit pending) by lender J.P. Morgan Chase. The home came to market as a short sale listing, asking nearly 45% less than the mortgage note. The listing was pulled several months later and the property's status is unknown. The filing marked the second time this home faced foreclosure, the first being in 2005.

*Source: Forbes