Celebrity Foreclosures - Economic Woes of the Rich and Famous

Recent economic difficulties have left manysaved from foreclosure by Donald Trump, who
homeowners in an untenable situation; housing valuespurchased the home and leased it back to the actor
have plummeted, leaving them with mortgages thatin order to prevent the loss of the home in which
far outweigh the home's current worth and creatingMcMahon had resided for the past eighteen years. At
the potential for foreclosure. Average homeownersthe time of purchase, the home had been on the
are not the only ones hit by the economic crisis,market for about two years.
however; the rich and famous have seen their shareEvander Holyfield
of financial difficulties due to poor management orHeavyweight boxing legend Evander Holyfield
recent economic downturns as well. As a result, anarrowly avoided the loss of his Fayetteville, Georgia
number of well-known and celebrity foreclosureshome to foreclosure. The 54,000-square-foot home
have taken place in recent years; while these rarelyincluded a bowling alley, seventeen bathrooms, and
have the same catastrophic effects for stars as forthree kitchens. Holyfield's mansion was scheduled to
private individuals, they can still create unfavorablebe sold at auction in 2008, but the sale was cancelled
publicity and damage the celebrity's public image.after Holyfield managed to pay off a portion of his
Nicolas Cageoutstanding mortgage and to catch up on
Despite his high-profile box office status, Academyoutstanding child support payments.
Award winning actor Nicolas Cage recently lost twoJose Canseco
homes in New Orleans to foreclosure proceedings.Some celebrities allow foreclosure proceedings in
According to public records, Cage owed more thanorder to unload a home that has lost significant value
$5 million in past due mortgage payments and backwhile avoiding the inconvenience of selling the
taxes. Cage's financial woes had made headlinesproperty themselves; famed baseball player Jose
earlier in 2009 when he filed suit against SamuelCanseco's $2.5 million home was surrendered
Levin, his longtime business manager, for financialvoluntarily because he felt it was an undue expense
mismanagement, misrepresentation and incompetenceconsidering the loss in value the property had
that cost Cage millions while allowing Levin to pocketexperienced in recent years. "It didn't make financial
substantial fees.sense," Canseco announced at the time of the
Stephen Baldwinforeclosure.
This follows on the heels of Stephen Baldwin'sCelebrities typically have at least one major
much-publicized foreclosure proceedings earlier in theadvantage over more typical homeowners; the
year. Baldwin's home on Old Mountain Road in Nyack,property foreclosed upon is usually only one of
New York, was listed at $3.4 million at one point, butseveral homes the star owns, and they are usually
after it failed to sell, two separate mortgages fell intonot financially ruined by the foreclosure process. For
default and required tax payments becamemost celebrities, foreclosure is an inconvenience that
delinquent, necessitating the foreclosure and auctiondamages their public image, but does not seriously
of the property.impact their future earnings or financial situation. As
Ed McMahonthe housing market continues to improve, the
Ed McMahon was among the first celebrities in recentforeclosure rate is expected to slow down, allowing
years to feel the sting of public foreclosure; hisaverage homeowners and the rich and famous to
Beverly Hills home was in default with almost $5remain in their homes and avoid the stress and
million in outstanding loans. McMahon was ultimatelystigma of foreclosure.