Unfortunately, another issue compounding the problems is Houston’s recent divorce from Bobby Brown. According to a story published by News24.com, “In September, Houston filed for divorce from Brown after a 14-year marriage.” Many ForeclosureFish clients experience the same or similar hardships, causing them to fall into foreclosure on their home. Houston, though, owned several pieces of property, one of which has already gone to sheriff sale, and another that is scheduled for sale in early 2007.
The home that is already gone was located in Georgia. According to the same News24.com article, “Grammy-winning singer Whitney Houston no longer has the Atlanta-area home she shared with husband Bobby Brown. The five-bedroom Alpharetta home went into foreclosure this autumn and was sold on the steps of the Fulton County Courthouse.” It appears that Houston was unable to pay back the arrears on this property, and could not work out a refinance or sale before the property went to sheriff sale. With high-value properties, sellers have a much tougher time finding qualified buyers, but lenders may be more willing to work with distressed homeowners. Banks do not want to own these properties that are difficult to sell.
Houston also owns homes in New Jersey, one of which is going to sheriff sale on January 4, 2007. SFGate.com reports that Houston’s home “faces being seized and sold, because she owes more than $1 million in mortgage payments and unpaid taxes.” Many of our clients, as well, rack up huge arrearage amounts. We do not often see over $1 million in arrears, but tens of thousands of dollars in late fees and court costs are common. Lenders also accelerate interest and penalties to inflate the payoff amount and raise the price at sheriff sale. The Fort Wayne Journal Gazette, in a brief article from November 17, 2006, states that “A sale could be averted if Houston reaches a settlement with the service agent, Sheriff’s Sgt. Steve Ackerman said.” Our book on foreclosure explains additional ways that Houston could postpone the sheriff sale, as well as reaching a settlement.
But if the sale is conducted, Houston will lose one of the properties that are on the estate. According to SFGate.com, “Houston will only lose one of two properties that occupy her estate -- which she bought in 1987 for $2.7 million -- the one valued at $889,300. An adjacent house is valued at $5.6 million.” The other property will still remain in her possession and hopefully will not go into foreclosure. If she is behind on the second property, though, that one will be auctioned off as well, at some point in the future.
Finally, Houston is exhibiting a common occurrence in foreclosure situations: she is denying there is a problem, even though it is apparent to nearly everyone that she is losing her property. SFGate.com reports that “The 43-year-old singer has dismissed the reports to Associated Press and her publicist insists the property is not in foreclosure.” Denying the foreclosure problem exists is found in large numbers of our foreclosure clients. Unfortunately, denial will not help the situation in any regard. In fact, it is best to request help as soon as a homeowner misses a payment.
It is the hope of ForeclosureFish.com that Houston is able to save the property from going to sheriff sale, or at least sell the home if there is no other available option. News24.com reports that “She remains in Los Angeles, where she is working on a new album.” Sometimes work is the best solution to growing money problems, including divorce and foreclosure.
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