These days it isn’t just the middle class or those working two jobs trying to stay afloat that suffer with mortgage debt and the risk of foreclosures; but even the rich are falling victim to a struggling market. In fact, foreclosure activity rose by nearly 500% for $1+ million homes between 2007 and 2011, compared to a 105% increase for homes less than $1 million.
High Profile Foreclosures
Pop star and singer, Rihanna, bought her $6.9 million home in Beverly Hills back in 2009. After she defaulted on payments earlier this year, the 8,520 square-foot home ended up in a short sale; which sold for around $4.5 million.
Actor, Burt Reynolds, was nearly two years late in payments on his million dollar home in Hobe Sound, Florida this year. The 12,500 square-foot waterfront home was listed as a short sale for $5 million, only a third of the homes original purchase price.
Comedian and actor, Chris Tucker, also sold his home in a short sale earlier this year. Allegedly owing $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.