By: Brenna Lemieux
January 27, 2011
US Bank's petition to foreclose on Toni Braxton's home has been granted, though she had previously expressed desire to continue living in the Georgia property despite her bankruptcy filing.
The single-family home, part of the Sugarloaf Country Club community, is currently valued at $1.2 million, and court records show that Braxton owes $1.5 million on the property, according to the Wall Street Journal. She had previously told the bankruptcy court that she wished to stay in the home, but the mortgage-holder on the property, US Bank, argued that Braxton did not actually own the home, and that the bank's security interest in it was not properly protected.
Braxton's bankruptcy trustee has recently acknowledged that the lender's interest in the property is not adequately protected, adding that the home is of "inconsequential value and benefit" to Braxton's estate. As a result of these factors, the trustee has said he will abandon the property.
In a Chapter 7 bankruptcy like that of Braxton, a bankruptcy trustee is the official appointed to oversee the liquidation of the debtor's assets for the benefit of creditors.