8 Black Celebs Who Faced Foreclosure — And How It All Worked Out In The End
Photo Credit: Kevin Winter / Dimitrios Kambouris / Stefanie Keenan

8 Black Celebs Who Faced Foreclosure — And How It All Worked Out In The End

When it comes to mortgages, don’t play with the bank’s money — or you risk undergoing foreclosure.

Amazingly, according to a press release, foreclosures throughout the United States were at an all-time low in 2021 — despite the devasting effects of the pandemic. The press release, which was dropped by ATTOM — a company that collects foreclosure data throughout the United States — reveals that just over 150,000 properties are in default as of 2021. Illinois and Florida, however, are the two states in the union that have the highest rates of foreclosure, and one in approximately 7,600 properties throughout the United States faced a potential filing in 2021.

“The COVID-19 foreclosure tsunami that some people had anticipated is clearly not happening,” said Rick Sharga, executive vice president at RealtyTrac, an ATTOM company, in a statement provided in the press release. “Government and mortgage industry efforts have prevented millions of unnecessary foreclosures, and while it’s likely that we’ll see a slight increase in the first quarter, we probably won’t see foreclosure activity back to normal levels before the end of 2022.”

Now, while those numbers are subject to change — especially if things don’t pick up in a post-pandemic world — it’s not just regular people that face this risk. These celebrities all faced foreclosure at some point in their career — so if you, too, are facing this prospect, take comfort in knowing that you aren’t alone (It’s also essential to get an attorney to represent your rights — and the sooner, the better).

But to avoid it all in the first place, experts suggest that you live at, or below, your means — no matter how much money you may, or may not, make.

Let’s take a look at how these stars got through it — and how, ultimately, it worked out for them in the end.

Fantasia

Photo Credit: Maury Phillips

In 2013, The Huffington Post reported that the former “American Idol” winner narrowly avoided foreclosure on her North Carolina home by doing what’s called a quitclaim deed (which, according to Investopedia, is when a deed is transferred from a seller to the initial creditor without putting default on the seller’s credit report). At the time, Fantasia defaulted on a $58,000 loan on the $1.3 million home, which she’d purchased back in 2007.

But in 2020, Fantasia revealed that she’d purchased a whole new home also in the North Carolina area — and she’s still thriving in it. She even held a virtual concert inside of it during the COVID-19 lockdown, per Fox46.

Rihanna

Photo Credit: Dimitrios Kambouris

Rihanna is the only celebrity on this list whose foreclosure had nothing to do with her financial issues.

Rather, according to Realty.com, Rihanna sold her Beverly Hills mansion in a short sale (which is when a home is sold for less than the amount due on the mortgage, which satisfies the debt, and is made after an agreement with a mortgage company to sell the property in such a fashion, per Investopedia) after it entered foreclosure.

Rihanna then turned around and successfully sued the developer, her real estate agent, inspectors, and others in 2012 — and it was revealed that she sold the property in a short sale because it had several leaks that made it unlivable.

Initially, Rihanna bought the home in 2009 for $6.9 million. When problems started emerging from the property, she listed the home for $4.5 million, and it was ultimately sold in the short sale for a little over $5 million.

But with an empire worth more than a billion dollars, Rihanna doesn’t have much to worry about.

Damon Dash

Photo Credit: Robin L Marshall

The New York Daily News reported that Jay-Z’s former business partner revealed his dire business straits after he was evicted from a home in Carmel, NY. At that time, he revealed he’d lost two Tribeca lofts to foreclosure, after defaulting on the mortgages totaling more than $7 million.

But in a recent interview with K97.5FM, he revealed that he’s living comfortably in North Carolina today.

Allen Iverson

Photo Credit: Paras Griffin

Back in 2013, Yahoo reported that Allen Iverson lost his Atlanta mansion to foreclosure. He defaulted on a $1.2 million mortgage, ultimately losing a home worth almost $5 million.

Back in 2011, he also lost his mansion in Cherry Hill, CO, to foreclosure after he defaulted on that mortgage, which he owed more than $2.5 million on.

Thankfully, however, Allen Iverson has completely turned his life around — and today, he’s gotten involved in several different business investments.

Nas

Photo Credit: Jon Kopaloff

In 2012, TMZ reported that he lost his Atlanta-area home to foreclosure after he defaulted on more than $500,000 worth of payments. The property was ultimately sold at auction for around $348,000, which was less than what was owed on the mortgage.

Fortunately, things have turned around for Nas, who now has a $70 million net worth.

T-Boz

Photo Credit: Noel Vasquez

Although the TLC singer initially refuted the foreclosure claims, The Atlanta Journal-Constitution reported that Tionne “T-Boz” Watkins underwent a foreclosure on her 10,000-square-foot. home in Duluth, GA, in 2009. She defaulted on more than $530,000 worth of payments on the property, but she insisted that it was because her now-ex-husband put the home in her name.

“No I’m not homeless,” she said. “During my last marriage … I had a bunch of things that were put in my name. If one of those properties is going into foreclosure then I don’t know.”

In 2020, T-Boz spoke to Essence and clarified the rumors about losing her home, and stated that it was a home she’d once owned with her now-ex-husband. She also stated that she currently owns a home where she lives with her daughter, but that the home isn’t in her real name because she values her privacy.

Chamillionaire

Photo Credit: Bob Levey

Unlike T-Boz, Chamillionaire admitted that he chose to have his home foreclosed upon.

In 2006, TMZ reported that a young Chamillionaire picked up a Houston mansion that had more than 7000-square-feet for a little over $2 million.

Although the bank foreclosed on the property, the “Ridin’ Dirty” rapper admitted that he wanted it to happen. He said he was always on the road, so he didn’t have an opportunity to enjoy the property. What’s more, he said, there were too many mortgages taken out on the property — and the real estate market had “turned bad,” so it didn’t make sense to keep it all.

Today, Celebrity Net Worth estimates that Chamillionaire has a $50 million net worth.

LaToya Jackson

Photo Credit: Tristar Media

In 2009, The Las Vegas Review-Journal reported that LaToya Jackson’s townhome in Las Vegas — which she purchased in 1996 for $260,000 — was in foreclosure, tallying up a whopping $750,000 in default payments, unpaid taxes, fees, and costs. The property went to a public auction on Aug. 31 of that year.

In 2019, though, things looked a lot better for the “Heart Don’t Lie” singer. She had a show called “Life with LaToya” on the OWN Network, where she revealed that she’d been house-hunting — and ultimately purchased a home — in Los Angeles.