More than 4 million homes have been foreclosed on in the past five years. Now the foreclosure wave is pulling in more celebrities and the wealthy.
“We are seeing foreclosure activity on higher-end homes increase at a faster pace for the past two years,” says Daren Blomquist, vice president ofRealtyTrac. From 2007 to 2011, foreclosure activity on homes worth more than a $1 million increased 489%, compared with a 105% increase on properties under $1 million, according to the Irvine, Calif.-based real estate information provider.
Forbes sifted through news reports, foreclosure filings and property listings to uncover examples of high-profile homeowners who face foreclosure or have at some point in the past year or so.
Five of them are published here. For the full slideshow, visit Forbes' site:
Family of Kristin Cavallari, Reality TV Personality
Property: Cavallari family home, Laguna Beach, CA, pictured at top
In February the home owned by the parents of "The Hills" star was reclaimed by the bank in a public auction for roughly 50% less than it had been listed for in 2009. The 7,100-square-foot waterfront home touts dry and wet saunas, a yoga studio and Feng Shui certified design. The bank-owned property found a buyer in July.
Property: Janice Place, Beverly Hills, CA
In 2009 the pop star bought a $6.9 million 8,520-square-foot contemporary and then flooding caused "extensive damage," according to its subsequent listing for $4.5 million, as is. The singer defaulted on the home, selling it as a short sale earlier this year to a buyer who ultimately paid more than the asking price.
Property: Southeast Federal Highway, Hobe Sound, FL
The "Smokey and the Bandit" star allegedly failed to pay his $1.2 million mortgage for two years. It was listed as a short sale for $5 million -- a third of his purchase price. The waterfront estate boasts 12,500 square feet, a helipad and yacht dockage.
Property: Bella Collina mansion, Lake County, Fla.
In October, Sun Trust Bank filed foreclosure papers alleging that comedian Chris Tucker owed $4.4 million on the 10,000-square-foot mansion he had purchased at the market high. It finally sold in a short sale earlier this year. The “Rush Hour” star also reportedly owes the IRS $11.5 million in back taxes.
Property: Madonna Lane, La Habra, CA
The foreclosure process on the 2,445-square-foot house of the reality TV star was finalized in June, with the bank repossessing the property in an auction that produced no bids. The first default notice was filed on the Orange County abode in late 2011. Suleman, who became a household name after giving birth to octuplets, filed for Chapter 7 bankruptcy in May.
- Real Estate