Whitney Houston is reportedly facing foreclosure on her 10-acre New Jersey estate for more than $1 million in past due mortgage payments and taxes, according to the Daily Record of Parsippany, NJ.The Morris County Sheriff's Office recently authorized the mortgage foreclosure sale of Houston's New Jersey home in court proceedings, after Mortgage Electronic Service Systems, the service agent for Chevy Chase Bank, allegedly filed suit in June of this year against Houston for non-payment of her mortgage.
If Houston does not get current with her allegedly past due mortgage commitments and unpaid taxes, which the Daily Record claimed have not been paid in more than a year, the home may be seized and sold in January as part of mortgage foreclosure proceedings. Houston purchased the estate, estimated to be worth $6 million, in 2003.
Houston's publicist has claimed that the New Jersey house is not in mortgage foreclosure. Prior reports by the Atlanta Journal-Constitution and other news sources that another house owned by Houston in Atlanta had been foreclosed upon and sold on the steps of an Atlanta courthouse were retracted by the paper as incorrect. The mortgage holder later confirmed that Houston was current on mortgage payments and still owned the home. The Morris County Sheriff's Office has said that Houston has until January 4 to make past due payments and stop mortgage foreclosure proceedings, according to the Daily Record.
Houston filed for divorce from her husband of 14 years, singer Bobby Brown, in September. According to her publicist, Houston is collaborating on a project with her cousin, singer Dionne Warwick.
Mortgage foreclosures are on the rise this year, as more than $330 billion in adjustable rate mortgages have adjusted upwards or will be adjusted upwards for millions of homeowners, who face dramatic increases in their mortgage payments in a very uncertain and complex economic climate.
Mortgage foreclosures can happen to anyone, however, and need not be caused by rising adjustable mortgage rates. Divorce, job loss, illness, or other unexpected circumstances can lead to financial problems and an eventual mortgage foreclosure for even the savviest financial consumer.
Mortgage foreclosures need not be a foregone conclusion for those who are facing financial obstacles and the possibility of losing a home. Many informed consumers can avoid mortgage foreclosures by consulting a qualified bankruptcy attorney, who can advise them on their options to stop the mortgage foreclosure and potentially save their home and other assets.
Filing Chapter 13 bankruptcy can stop a foreclosure in its tracks and provide help in the form of a court-ordered payment plan that will save the home.
Another form of bankruptcy, Chapter 7, will not save the home, but it will provide a "fresh start" and relieve the consumer of repaying the debt. Which form of bankruptcy a consumer files can depend on how much debt there is and the circumstances causing the financial issues.
A bankruptcy attorney can provide consultation to anyone facing a possible mortgage foreclosure and help them make an educated decision on how to avoid it, maintain and keep assets, and get back on track financially.