Kevin Spacey is Still in His Foreclosed Home

Kevin Spacey apparently “refuses” to leave his Baltimore condo after losing it to foreclosure. Yes, you read that correctly! Even though Spacey stopped making mortgage payments on his home, he continues to reside there. He also has not filed for Chapter 11 or Chapter 13 bankruptcy.

Kevin Spacey Foreclosure Update

According to the L.A. Times, Spacey hasn’t left because a move-out date is being negotiated. In other words, that’s how he rolls. Trust me, you try that. Let me know how long it takes for you to get arrested for trespassing.

I’ve written a couple of prior blog posts on Spacey’s foreclosure. One of the issues I found odd was that he did not file for bankruptcy. Most likely, he lacks the income to qualify for Chapter 11 bankruptcy, and with Chapter 7, he is looking at liquidating his assets. The prudent step is bankruptcy unless assets are being shuffled around. Time will tell.

Spacey did tell Piers Morgan in an interview on “Uncensored” that “There’s been a couple of times when I thought I was going to file [for bankruptcy] but we’ve managed to dodge it.”

Kevin Spacey moved into the beautiful condominium while filming “House of Cards.”

The new owner is a Potomac real estate investor named Sam Asgari. Since Asgari owns the property, guess what? He is already paying taxes, insurance, and mortgage payments. I fail to see how this is fair unless Asgari agrees to it. I also don’t like the liability issues involved.

Supposedly, the plan was for Spacey to leave in six months. My question is, what if he doesn’t? Now what? Spend six more months litigating this issue? Any money judgment against Spacey would likely be worthless at that point. So, all I see is a win-win scenario for Spacey.

What to Do If You Are Facing Foreclosure?

First and foremost, if facing foreclosure, don’t do what Spacey is doing. Be proactive. Lenders have been more flexible since the 2008 mortgage foreclosure crisis. So step one is seeing if they will agree to delay payments from thirty to ninety days. That could be the time you need to get back on track financially.

You can also see if your mortgage lender will agree to a loan modification that will help reduce your monthly payments.

How Chapter 13 Bankruptcy Helps

If you need to catch up on your mortgage payments, Chapter 13 bankruptcy can help. With Chapter 13, the arrears or missed payments are spread out over thirty-six to sixty months. During this time, the regular monthly mortgage payments are also made. Also, the automatic stay prevents foreclosure from moving forward as long as the bankruptcy case is pending.

One concern is that you should watch out for foreclosure recovery scams. Usually, someone appears uninvited at your home or calls you and offers to resolve the foreclosure. In reality, you often sign over the house and are now a renter. This means all your rent payments are going to the mortgage for which you are still liable, but you no longer own the home.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon Books. To access my YouTube channel, click this link. Bankruptcy-related news can be found via my archives page by clicking here.

Find additional topics of interest below.

• Bankruptcy
• Your Wallet

Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.