Foreclosure

What?! Prince in foreclosure?!

Prince is on the top of my favorite artists list.  This article takes a light-hearted look at what appears to be a trend in “celebritydom”…

Bankrate.com

I know the foreclosure crisis has been super-bad, but now it’s even badder, given that it’s knocking on the door of the baddest, most ridiculously funky musician to ever emerge from the frozen north: the Minnesota Landowner Currently Known as Prince. Or MLCKP, if you prefer.

The Carver County Sheriff’s Office reports that the multitalented, multiplatinum Rock and Roll Hall of Famer has fallen behind $368,382 on the mortgage to his 20-acre former manse in Chanhassen, the Minneapolis suburb that he’s called home since 1980.   A sheriff’s auction is set for May 13.

According to the foreclosure notice in the Chaska Herald, His Paisleyness bought the property in 1994 for $605,000. But you won’t find him mixing tracks there these days; he leveled the place in 2005, leaving only the tennis court and gatehouse. The property is currently valued at $1.15 million.

Prince’s publicist denies the report. USA Today quotes a local legal firm as saying there is “a decent likelihood” that The Artist will send The Payment before The Auction.

Given that Prince coughed up $1.3 million last year in current and delinquent property taxes on 14 parcels in Chanhassen, it would indeed seem unlikely that MLCKP would let the place go for a song.

But it’s a sign o’ the times that even well-heeled celebrities have been drawn into the foreclosure undertow. A host of them have run afoul of the taxman lately as well.

What’s the takeaway? Three words: Pay. Your. Bills.

Yes, there’s a whole alternate reality, a dark marketplace out there that wants you to believe that it’s more complicated than that.

But it isn’t. To avoid foreclosure, pay your bills.

And when it comes to home mortgages and living beyond your means, don’t party like it’s 1999. 

Now excuse me, I have to get back to “Little Red Corvette.”

Follow me on Twitter. It’s what it sounds like when doves cry.

40 States Join to Halt Foreclosures

Wallstreet Journal

Attorneys General Hope Lenders Will Re-Write Loans With Troubled Documents

A coalition of as many as 40 state attorneys general is expected Wednesday to announce an investigation into the mortgage-servicing industry, an effort some of them hope will pressure financial institutions to rewrite large numbers of troubled loans.

The move comes amid recent allegations that mortgage-servicers, which include units of major banks such as Bank of America Corp., submitted fraudulent documents in thousands of foreclosure proceedings nationwide.

The banks say the document problems are technical—largely the result of papers approved by so-called robo-signers with little review—and don’t reflect substantive problems with foreclosures. Still, they have drawn criticism from consumer advocates and state and federal lawmakers.

“I think the mortgage-servicing firms need to understand that they face real exposure now, and they would be well advised to take this very seriously, to clean this up by doing loan workouts to keep people in their homes, which up till now they’ve just paid lip-service to,” said Ohio Attorney General Richard Cordray.      Continue reading…