U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions have increased 57% from a year ago according to ATTOM, a real estate data firm.
Foreclosure is a process that begins when a borrower fails to make their mortgage payments. Rocket Mortgage explains, “When a home is foreclosed upon, the lender typically repossesses and attempts to sell the house. This happens because mortgage loans are secured by real estate, meaning your home is used as collateral.”
Foreclosure can happen to anyone, especially in an economic downturn.
“Foreclosure activity across the United States continued its slow, steady climb back to pre-pandemic levels in the first half of 2022,” says Rick Sharga, executive vice president ATTOM said in an interview with Market Watch. “While overall foreclosure activity is still running significantly below historic averages, the dramatic increase in foreclosure starts suggests that we may be back to normal levels by sometime in early 2023,” said Sharga.
So, it’s clear that although foreclosures are extremely common, they can be tough to go through, but not impossible to recover from. As foreclosures don’t usually start until 60-120 after missed mortgage payments, you do have time to get your ducks in a row.
“Making your mortgage payment after the 1st of the month won’t be considered late,” says James McCann, branch manager at Cornerstone First Mortgage in a CNET.com interview. “Most mortgage servicers won’t charge a late fee until the 15th of the month and even when they do, it’s usually nominal. Mortgage payments aren’t reported late until the 30th of the month.”
Fortunately, if you’re experiencing that process, you’re in famous company. Many of celebs have found themselves being foreclosed on, and they’ve turned it around. From Toni Braxton to Jay Z, here are some of the stars that have experienced loss and come back stronger than ever.
The mogul couldn’t reportedly avoid foreclosure when he and his partners fought lenders over a $52 million deal for his planned J Hotel.
In 2008,the King Of Pop’s mounting legal bills during the time of his years-long trial forced his Neverland Ranch into near foreclosure. Fortunately, he managed to stave off the process by auctioning off the zoo and the amusement park rides in his multi-million dollar estate, which took about $10M/year to maintain at the time.
The famous Jackson has regularly appeared on reality shows following her music career, but they evidently were not high-paying gigs. Unfortunately, in September 2009, The Las Vegas Review-Journal reported her Las Vegas condominium had gone into default and multiple liens had been placed against the property for delinquent fees, according to CNBC. Since then, it seems she has recovered as Jackson is continuing to make reality show appearances.
The star of the mega-successful Rush Hour franchise was at one time among the highet paid actors in Hollywood.
He was reportedly given $20 million for “Rush Hour 2” and $25 million for “Rush Hour 3.” Following the mega hits, the actor purchased a $6M mansion to match his newly upgraded lifestyle.
But in 2011, People magazine reported that the mansion had gone into foreclosure. The actor’s monthly mortgage payments were almost $26,000, and he owed more than $4 million to his bank. Since then, it seems like the famed actor has cleared his debt.
Dash faced a setback when he lost his Tribeca duplex when it was foreclosed on while he was battling a bitter divorce from ex Rachel Roy.