Nicolas Cage facing foreclosure?

By admin • February 6th, 2011

Star status won’t pay the mortgage or eliminate the need for bankruptcy!

In today’s economy it shouldn’t come as much of a surprise to find celebrities facing financial problems and bankruptcy. But you have to wonder, just how does Nicolas Cage get behind on his mortgage payments? I suppose he does it the same way most Americans do it…just on a larger scale.

According to John Anderson, owner of Twin Oaks Realty in Minneapolis and a National Association of Realtors expert in foreclosures, “There are many among the rich and famous who couldn’t keep up when the rates on their adjustable rate mortgages shot up. Price drops at the high end of the market were so steep that a sale wouldn’t cover the debt. In other words, high-end homeowners face the same problems that plague the rest of us. “

And what can they do about it? They could consider short selling their home(s), and depending upon circumstances, they may consider bankruptcy. Since a Chapter 13 limits secured debt at $1,081,400, some high roller debtors need to consider a Chapter 11, which sometimes referred to as a jumbo 13. Using a Chapter 11, the debtor may be able to keep the house(s) but could conceivably eliminate second, third and even fourth mortgages which is not an option in Chapter 7 cases.

So, what is Mr. Cage’s situation? According to www.money.msn.com in November 2009, Cage lost two New Orleans homes — one in the French Quarter, the other in the Garden District — worth a combined $6.8 million, according to a CNNMoney.com report. Cage was behind $5.5 million in mortgage payments, and he owed $151,730 in property taxes to the city of New Orleans. Regions Bank paid $4.5 million for the properties.

I don’t know about you but it sure makes me feel better about spending $10 to $15 for a movie ticket knowing I can help keep these guys’ homes out of foreclosure. You think we should start a special fund for them? 

 

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