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More Rihanna trouble: her house will be sold by a short sale As if Rihanna's breakdown in Dublin the other day due to her heavy touring schedule wasn't enough, apparently she's in financial trouble as well. Her house is going to be sold by a short sale, which means the bank will receive all the money from sale, but it will be less than what Rihanna still currently owes on the house. Banks only allow this if the owner of the house can't afford to keep paying mortgage...because if you aren't broke and sell your house by short sale, you're committing fraud. The house was sold to Rihanna at $6.9 million, and the short sale price will be $4.5 million, so she clearly owes A LOT.
As for Rihanna, she apparently filed a lawsuit against the seller of the house to her, as she claims that there were major problems such as water leakage that weren't disclosed to her at the time of the sale.
Anyway, here's the article I just summed up. Photos of the house can be seen by clicking on the link:
Rihanna's House of Horrors Faces Short Sale (photos)
Rihanna’s problem plagued $6.9 million home in Beverly Hills is on the market for $2.4 million less than the purchase price in what’s known as a short sale. The move may, but doesn’t necessarily, mean Rihanna is broke.
Rihanna, real name Robyn Fenty, has filed a raft of lawsuits against the seller, the real estate company and others over serious problems she’s encountered with leaking roofs, windows and doors and heavy water damage inside the mansion.
A number of Web sites, including Huffington Post and MediaTakeOut.com have reported that the short sale is an indication that Rihanna can’t pay her bills.
While short sales usually occur when a homeowner can no longer pay a mortgage, it doesn’t always signal financial distress, according to several real estate legal references.
It basically means that a property is being listed by a bank, or mortgage holder, for less the the amount of the mortgage. As such, it is a short (of the mortgage) sale
Short sales can take place under all kinds of circumstances, not limited to financial distress. Given the litigation, it may just be part of negotiations to resolve legal issues.
But a short sale doesn’t free her from owing the difference between the mortgage amount and the eventual sale price of the house.
In rare occasions banks will forgive the debt, but that seems unlikely here.
One thing is certain, Rihanna has likely stopped paying on the house.
But a short sale alone doesn’t mean she is broke, because financial distress is only one condition a bank considers when it agrees to a short sale; it’s not the only condition, nor is it a requisite.
MediaTakeOut.com suggested Rihanna could be committing a fraud, if she did not “qualify” for a short sale. But the only qualification is that the bank must agree to a short sale. The advantage to the bank is to avoid a costly foreclosure.
The eight-bedroom, ten-bathroom home was described as “stunning brand new construction” with over 10,000 square feet of space when Rihanna bought the property in 2009.
The previous owner, identified as Heather Rudomin, totally renovated the property in 2007 and 2008, according to the Los Angeles Times.
Rihanna filed suit last August against the realtors, developers and other companies that took part in the remodeling of the home. She said she would never have bought the place if she was made aware of the problems.
The “S&M” singer claims water leaked into several rooms of the house from a balcony that lacks the proper slope and drainage after a rainstorm in early 2010. The suit states the damage left the home “uninhabitable,” according to the AP.
“If Rihanna did, in fact, perform due diligence in purchasing the property and existing problems were not disclosed, then, in the state of California as in many other states, she would have a case,” according to real estate Web site zillow.com
The current listing describes the home as “a MAJOR fixer with EXTENSIVE water intrusion” and “EXTENSIVE damage from moisture AND water intrusion.”
To add insult to injury, the house is only 8,500 square feet in size.
Given the condition, the property doesn’t qualify for bank financing, according to the listing.
But the bank “will consider all offers.”
http://www.theimproper.co...ale-photos
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oh the media....Where does it say she's broke????
"The move may, but doesn’t necessarily, mean Rihanna is broke." | |
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On the same day msn is making the T-Boz bankruptcy a headline? And just to think over 15 years ago they were on top of the world and facing the same problem. *smh* | |
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somehow,I don't feel like Rihanna is gonna be homeless...lol....she can't possibly be dirt poor.First of all the breakdown story was from THE SUN, I haven't seen any trustworthy news source pick it up
Second it's not like Rihanna's entire fortune was in the house, girl is finishing a tour and releasing a new CD, for her the cash is flooding in.
This isn't news. [Edited 11/30/11 6:57am] 2012: The Queen Returns | |
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I agree. Only something like this comes from a tabloid. Usually their sources are OFF! | |
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RKJCNE said: First of all the breakdown story was from THE SUN, I haven't seen any trustworthy news source pick it up
Second it's not like Rihanna's entire fortune was in the house, girl is finishing a tour and releasing a new CD, for her the cash is flooding in.
This isn't news. [Edited 11/30/11 6:57am] Uhmm, she's signed a 360 deal IDJ gets a cut of her touring, merch, and endorsement deals. That's not even mentioning the big budget videos, and writing camps they hold for her. Those writing camps alone would cost any artist a pretty penny. With that said, if she is doing a short sale that won't be to hard to factually verify. And, if it's true she's either broke, stupid, or both. A short sale will kill her credit. | |
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Why do you guys claim to not be fans... but post every little thing reported about her Pistols sounded like "Fuck off," wheras The Clash sounded like "Fuck Off, but here's why.."- Thedigitialgardener
All music is shit music and no music is real- gunsnhalen Datdonkeydick- Asherfierce Gary Hunts Album Isn't That Good- Soulalive | |
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Thats the same thing I said about Beyonce. Folks whine and complain but then post at least one post related to those two weekly.. smh | |
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She just got nominated for Album of the year, so I think she'll be fine.
2012: The Queen Returns | |
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She's MORE than alright. | |
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I refuse to believe Rihanna is having any financial troubles whatsoever. It simply cannot be true. There is no justice in the universe if she has money woes and Chris Breezy is gettin' paper and buying a snazzy beach front home for 1.5 million CASH! Hell no...this betta not be true! I'M NOT SAYING YOU'RE UGLY. YOU JUST HAVE BAD LUCK WHEN IT COMES TO MIRRORS AND SUNLIGHT!
RIP Dick Clark, Whitney Houston, Don Cornelius, Heavy D, and Donna Summer.  | |
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As it says in the article, short sales happen for lots of reasons. Sometimes it's just not worth it to keep a house that has gone down in value.
She is probably buying another one for half the price...with cash My Legacy
http://prince.org/msg/8/192731 | |
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Right. | |
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I would find a way to dump that ugly ass house too...did she see the place before she bought it??? Yuck! Prince, in you I found a kindred spirit...Rest In Paradise. | |
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