9 Stars in Dire Financial Straits
Stephen Baldwin, MJ and Victoria Gotti are among stars hit hard by tough times.
June 17, 2009 — -- Even the rich and famous can't seem to escape the recession, especially when their fame and fortune peaked long ago.
Hit by tough times and lack of opportunities, stars including Stephen Baldwin, Michael Jackson, Ed McMahon and Annie Leibovitz have been hit by tough times. Some have had to put their multimillion dollar homes on the market, declare bankruptcy or seek foreclosure. Below, ABCNews.com takes a look at nine stars that have found themselves strapped for cash.
Stephen Baldwin, the star of films like "Bio-Dome" and "The Usual Suspects," may watch his Rockland County, N.Y., home go up for auction on June 24. The born-again Christian and brother of Alec Baldwin paid $515,000 for the home and 1.4-acre lot in 1997, according to the AP. The star has recently been appearing on reality shows such as "The Celebrity Apprentice," and "I'm a Celebrity... Get Me Out of Here!" where he baptized Spencer Pratt.
After unsuccessfully trying to sell the house in 2006, Baldwin and his wife Kennya have defaulted on over $824,000 in payments to their mortgage, according to the AP. But a representive for Baldwin tells People Magazine that "Stephen is presently going through a legal situation regarding his mortgage and that situation is still in process. No auction will be happening and all things related to this matter are being handled by his legal representation."
Jose Canseco struck out early in the mortgage crisis when the baseball slugger-turned-reality-star had to let go of his $2.5 million Encino, Calif., home in May 2008. Canseco decided to ditch the mansion, citing plummeting property values and a high mortgage, reported Forbes.com in 2008. "It didn't make financial sense for me to keep paying a mortgage on a home that was basically owned by someone else," Canseco told "Inside Edition" last year.
Victoria Gotti, daughter of late mob boss John Gotti, apparently owes $650,000 to JP Morgan Chase Bank, which has sought to foreclose on her Old Westbury, N.Y., mansion since 2007. Lower court rulings have deemed foreclosure premature, according to People Magazine. However, an appeals court reversed that decision and the $4.2 million estate now appears to be at risk.
The house, which was used in the short-lived show that brought the Gottis into the limelight, "Growing Up Gotti," was part of a divorce package from her ex-husband, Carmine Agnello. "This should finally put to rest all the government lies and rumors that I have $200 million buried in my backyard," Gotti told the New York Post.
Willie Aames, former star of 1970s and '80s hit shows "Eight is Enough" and "Charles in Charge," joined the ranks of recession-hit celebrities when he held a garage sale at his suburban Kansas City, Kan., home. Dozens of fans showed up score a piece of Aames' TV memorabilia along with antiques, artwork and mounted deer heads.
According to the website TMZ, Aames filed for bankruptcy last year, and his home is in foreclosure. The garage sale was his latest move to stay afloat.
He may still be the king of pop, but Michael Jackson doesn't have royal amounts of wealth to go with his title. Last year, he sold his famous Neverland ranch to the Sycamore Valley Ranch Comapny, LLC. But when 2,000 items from the estate were supposed to be auctioned in April, Jackson fought to win a last-minute settlement nixing the event.
Jackson may have a new payday set: a series of 50 concerts kicking off in London in July. Some 750,000 tickets sold out in four hours. Jackson reportedly stands to earn between $1 million and $2 million per show.
Former "Full House" star Jodie Sweetin is struggling to keep a house of her own. In November, the mom and former meth addict reportedly filed court papers detailing her crumbling marriage to Cody Herpin and the sad state of their financial affairs.
"Our house is in foreclosure, our water has been shut off twice. Currently, all of our other utilities are overdue," Sweetin said in papers filed Nov. 19 in an Orange County, Calif., People magazine reports. Sweetin may be able to pay some bills with the proceeds from her new tell-all. The New York Post reported that she will bare her past as a secret drug abuser in "UnSweetined," coming from Simon Spotlight Entertainment.
She's photographed some of the world's most famous faces and is an icon herself, but Annie Leibovitz is struggling to stay out of debt. In September, the New York Post reported that the 58-year-old photographer has racked up $715,000 worth of debt, citing court documents.
The Post says allegedly owed money for unpaid taxes, an aborted book project and equipment rental fees. She was also overdue in paying for renovations to her New York City town house, citing court documents.
The New York Times reported that Leibovitz is trying to rectify her financial woes by hocking her photographs. In December, she borrowed $10.5 million from the Art Capital Group, on top of the $5 million she borrowed from the same firm in the fall. She put up as collateral the rights to all her photographs, along with her town house and a country house.
"American Idol" fame isn't helping R&B crooner Ruben Studdard pay his bills these days. In August, the season two winner was hit with property liens for allegedly failing to pay nearly $200,000 in state and federal taxes, according to court records, the AP reports. Studdard's attorney, Byron Perkins of the Cochran Law Firm, told the Birmingham News that he believes Studdard will be able to pay off the taxes.
Times are tough for Johnny Carson's former right-hand man. Ed McMahon shocked fans last summer when he announced he was on the brink of foreclosure. Things seemed to take a turn for the better when at least two people offered to buy McMahon's six-bedroom Beverly Hills mansion, including Donald Trump, who said he would lease the home back to McMahon but he was outbid and backed out of the deal.
According to RadarOnline, Ed's home was allegedly going to be auctioned off this month. But his representive Howard Bragman told the Los Angeles times that "A private mortgage holder purchased the mortgage on the home last year and Mr. and Mrs. McMahon are able to pay rent and stay in the home until they affect an agreed upon and smooth transition into a new residence."
Meanwhile, McMahon's health is declining. The ex-"Tonight Show" sidekick was hospitalized with bone cancer in February.
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