When it comes to foreclosures, even a famous movie star can end up in red ink after hitting it big on the red carpet.
The rich and famous live lifestyles that most of us can only dream about. However, when financial problems hit, they end up in the same situation as anyone, and that can include foreclosure.
Actor Stephen Baldwin is the latest celebrity to face financial problems. His foreclosed home in Rockland County, N.Y., is scheduled to go on the block in March to pay off more than $1 million he owes on the property.
Baldwin, who has starred in “Usual Suspects” and “The Flintstones in Viva Rock Vegas” and TV’s “The Apprentice,” is the bother of actor Alec Baldwin.
According to records, Baldwin and his wife, Kennya, purchased the home in 2000 for $812,500. They defaulted on the mortgage in 2013. Deutsche Bank filed a foreclosure lawsuit against the couple, accusing them of defaulting on their loan by failing to make payments.
The New York Daily News reported that the Baldwins raised an issue with the validity of the mortgage and, according to court documents, claimed the bank did not have a “clear chain of title for the mortgage and promissory note.
However, a judge rejected that argument entered a $1 million judgment lien and the home was foreclosed in December.
Baldwin is the just latest celebrity to face financial problems with real estate.
Burt Reynolds filed for bankruptcy in 1996, owing $10 million in debts. The case closed in 2007 but he faced foreclosure in 2011 for a 3.4-acre estate in Florida. The star of films such as “Deliverance,” “Smokey and the Bandit” and “Boogie Nights” went to court in hopes of being able to convince the judge in throwing his foreclosure out the window but that was not successful.
Television actress Kristen Bell has not commented on the foreclosure of her $3.1 million dollar mansion in Los Angeles. It sold after the foreclosure, for almost a $1 million dollar loss.
Celebrities often have trouble limiting their spending and end up in a financial mess. That was the case with Oscar-winning actor Nicholas Cage, who lost several homes to foreclosure.
Cage’s former business manager Samuel Levin warned the actor about the dangers of his “compulsive, destructive spending,” and encouraged him to sell off 12 automobiles and a $1.6 million comic book collection. Cage starred in a number of blockbuster films, including “Leaving Las Vegas,” “National Treasure,” “Face/Off” and “Con Air.”
According to Forbes, Cage lost his Bel Air California home that was sold at auction to an unnamed limited liability company. The 1940s Tudor mansion once belonged to Dean Martin and Tom Jones.
Cage then lost lost his 14,300-square-foot Las Vegas home which went into foreclosure. He purchased the house in 2006 for $8.5 million. It boasted a 16-car subterranean garage, a theater, and an elevator.
The problems continued when Cage lost his two New Orleans homes, worth a total of more than $6.8 million, to foreclosure auctions, according to money.cnn.com.
According to records, Cage owed the city of New Orleans $151,730 in real estate taxes, and mortgage payments of $5.5 million.
Ultimately, celebrities face the same financial risks as the rest of us. Often, the bigger the bank account, the bigger the problems.