1. Peggy Tanous Foreclosure
Peggy Tanous of Real Housewives of Orange County fame — the sixth-season addition to the originating series of the popular franchise — is known for being a 41-year-old blonde beauty with plenty bling and Bentleys.
Unfortunately, it seems that income provided by the franchise was not enough to support the lavish lifestyle witnessed on the show. According to media reports, years after Peggy and her husband Micah purchased a new home in 2006, they ended up owing $1.3 million under two mortgages.
Reportedly, the couple experienced financial difficulties and defaulted on their mortgage in late 2010. After attempting to negotiate with the bank, a foreclosure notice was filed in 2011.
2. Kristin Cavallari Foreclosure
Kristin Cavallari is popular for starring on the hit MTV shows Laguna Beach and The Hills. Her family was known for its financial security, but it appears that neither her parents’ income, nor Cavallari’s reality TV income, could save them from foreclosure.
In Feburary 2012, the home owned by Cavallari’s parents was reclaimed by the bank in a public auction for approximately 50 percent less than it had been listed for in 2009. The beautiful 7,100-square foot waterfront home — touting a yoga studio and wet and dry saunas — reportedly found a buyer in July.
3. Teresa Giudice Foreclosure
Teresa Giudice, known for being one of the most controversial members of the Real Housewives of New Jersey, suffered her own financial heartache since becoming a cast member. Known for showcasing a flamboyant lifestyle with her husband Joe Giudice, one would think this couple had no financial issues to contend with.
Apparently, nothing could be further from the truth. In 2010, the couple made headlines after filing for bankruptcy, reportedly owing more than $11 million. Not to mention that the couple’s $1.8 million, 10,500-square foot home that they moved into during the first season, was placed in foreclosure.
4. Stephen Baldwin Foreclosure
Actor Stephen Baldwin is known for is time on Celebrity Mole and Celebrity Apprentice, but is most popular for being one of the famed Baldwin brothers. While the brothers have suffered their share of problems of the years, Stephen in particular has struggled in the finance department.
After purchasing a $515,000 home in 1997, Baldwin decided to list the property for sale in 2006 for $3.4 million. However, after not selling for three years, the Baldwins reportedly defaulted on paying $824,488.36 to their mortgage holder Bankers and Trust Co. Also, the couple reportedly owed tens of thousands for a separate mortgage, along with unpaid state and federal taxes.
5. Donald Trump Foreclosure
Donald Trump, known as the creator of reality shows The Apprentice and Celebrity Apprentice, surprised the masses when one of his properties fell into foreclosure.
The real estate superstar’s $200 million high-rise Trump International Hotel & Tower in Fort Lauderdale was off to a great start after acquiring investors who were willing to put 20 percent down on the building that donned 298 luxury hotel suites and condo apartments.
Priced from $500,000 to more than $1 million per unit, no one expected the hotel to fall into foreclosure after defaulting on a $139 million loan. In 2010, Trump announced that he was no longer affiliated the project and in March 2012, the unfinished condo-hotel was sold in a foreclosure auction to Corus Construction Ventures, LLC.
Reality TV has given many otherwise unknown individuals the opportunity of a lifetime: A chance at fame and fortune. However, not everyone has benefited from the perks of this relatively new TV genre. In fact, some have suffered financial losses in the wake of their fame.