TMZ reported today that Michael Jackson's sister, La Toya Jackson, may lose her Las Vegas condo if she doesn't come up with the cash to pay her mortgage by the end of the month. According to TMZ, La Toya owes nearly $750,000 on her condo, located in the swank Regency Towers (below) in Las Vegas.
TMZ also includes a statement reportedly issued by her representative: "La Toya has an extensive real estate portfolio and her advisors directed her to the business decision to let this particular property [] go to short sale . . . The property was also something she got during her divorce from Jack Gordon and she has no attachment to it."
We believe her! For the most part, that is.
We located the property records ourselves and found that it was recently placed up for sale at a list price of $205,000, but it is now temporarily off the market.
If she owes almost $500,000 more than the condo is even worth, perhaps it is a smart financial decision to just let it go.
The thing is, technically a short sale happens when the bank allows you to sell your home for less than what you owe. In this instance, TMZ reports that La Toya's condo is slated for auction on September 30.
That would be a FORECLOSURE, NOT A SHORT SALE!!!
Anyway, La Toya is scheduled to appear on ABC's 20/20 tonight in an interview with Barbara Walters. We'll see if she discusses any of this.
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My question is how does she owe 500k more than the condo is worth?
ReplyDeleteOur guess is she probably refinanced a couple of times at the height of the housing market. Las Vegas real estate is in the toilet these days.
ReplyDeleteooooh, this is juicy. Hope she works it out. Bad timing...
ReplyDeleteUnfortunately, when one loses their home no matter the circumstance, it is a sad situation. It is stupid to try to pay off the loan when one owes more than the property is worth. Las Vegas market doesn't seem to be recovering any time soon.
ReplyDeleteWishing her good luck.
Tina and Anon, We hope it works out for La Toya too! And we aren't sure we'd react differently if we were in her shoes.
ReplyDeleteLooks like she is just letting it go--financially and emotionally. Did you see where she mentioned that she got it in the divorce and has no attachment to it?
Poor and rich at the same time.
ReplyDeleteYou are so right Cassandra!
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