Debt and foreclosure aren’t just hitting the lower and middle class families in today’s economy; even the rich are becoming more at risk. In fact, the rate of foreclosures on million plus dollar homes rose by nearly 500% between 2007 and 2011.
Celebrity Foreclosures
Pop star, Rihanna, was facing foreclosure on her $6.9 million home in Beverly Hills. Bought back in 2009, the singer defaulted on payments earlier this year on the 8,520 square-foot home. The home was entered into a short sale where it sold for around $4.5 million.
Actor, Burt Reynolds, was nearly two years late in payments on his 12,500 square-foot waterfront home in Hobe Sound, Florida this year. Consequently, it was listed as a short sale for $5 million, only a third of the homes original purchase price.
Comedian and actor, Chris Tucker, allegedly owe $4.4 million a 10,000 square-foot home in Lake County, Florida. Tucker also reportedly owes the IRS $11.5 million in back taxes, and sold his home in a short sale earlier this year.
Bankruptcies
Celebrities have also been put front lines of the news for filing bankruptcy. Octomom, Nadya Suleman, is still in the spotlight for her filing a few months ago. Baseball player Jose Canseco and Olympic Athlete Gabby Douglas’ mom are also two names in the headlines this year, as they seek help for their financial trouble. For more information, you can see a list of past celebrities in bankruptcy.