Celebrity Foreclosures Overview

Posted on July 13th, 2009 by saman

Gotti Celebrity Foreclosure

It feels like it was just yesterday when there was an excess in everything and celebrities did their best to liven things up by purchasing expensive toys, lavish cars, as well as over-the-top houses. Now, it seems that they are losing their homes just like everybody else.

Victoria Gotti, who is the daughter of the crime boss of the Gambino family, John Gotti, allowed audiences to come into her lavish estate in Long Island that is worth almost five million dollars for a reality television show called Growing Up Gotti. However, nowadays, this mafia princess who is now a columnist for the New York Post happens to be behind by almost seven hundred thousand dollars when it comes to her mortgage and it seems like she will soon be losing her home.

One part of this overall problem for several celebrities would be that they are not allowed to borrow big amounts of dollars since their massive paychecks while the times were in boom. However, Hollywood tends to be fickle, and nowadays, several very important people struggle with much smaller streams of income, as well as mortgages that are worth much more compared to what their houses are actually worth right now.

Several of them are still able to manage payments, however stop paying since they don’t see much of an upside. Former baseball player Jose Conseco stated that he merely walked away from his three million dollar home since its overall value was dropping but his payments in mortgage weren’t. It simply did not make any financial sense for him to keep paying up on a home mortgage which basically was owned by another person. He announced plans of stopping his contract of mortgage just last May.

However, even foreclosure tends to be different when it comes to celebrities. In fact, it tends to be quite a lot different compared to most. Celebrities can simply decide to let things go. However, in the majority of cases and the majority of families, they won’t have anywhere else they could go to.

Even the co-founder of Roc-A-Fella Records, Damon Dash, is having a hard time. After getting hit with a notice of foreclosure the previous year, Dash was not able to make his monthly payment of mortgage of almost eighty thousand dollars on both of his condominiums in lower Manhattan, which he purchased for around seven million dollars. His wife, fashion designer Rachel Roy asked to file for a divorce last March.

Veronica Hearst, New York’s socialite, happens to be at the highest end of famous victims of foreclosure. She is the widow of Randolph Hearst, publishing mogul, and has lost her beachfront residence in Florida of almost fifty million dollars last February. This palace with fifty-two bedrooms was her second home and was sold within an auction for foreclosure for less than twenty-five million dollars.

Lenny Dykstra, former Mets and Phillies star, began a reputation as a major investment guru after baseball retirement. Sadly, he was not financially savvy enough to keep all of the books within order. His disastrous publishing foray ended in a debt of millions, putting his nineteen million dollar mansion in California into complete jeopardy.