Celebrity Financial Woes

by Michele Cheplic | More from this Blogger

10 Dec 2008 01:25 PM

From the top of the heap to the bottom of the barrel.

If you thought celebrities were immune to the economic crisis, think again. According to reports, American Idol winner Fantasia Barrino has become another victim of the tanking housing market.

News reports say one of the Charlotte, North Carolina homes owned by the singer is being auctioned off to reimburse a loan that was used to pay her taxes. Broward Energy Partners reportedly agreed to pay more than $68,000 of the award-winning singer's taxes in 2006, but now they say they have not been fully compensated. Execs with the company say the sale of Barrino's home would be used to finish paying off the loan.

The 24-year-old's home is due to be auctioned in January by the sheriff's office unless Barrino can come up with the $68,000 on her own.

The singer turned Broadway star also owns another home in the area, estimated to be worth $740,000.

The news isn't much better for Judy and Larry Vardon. The deaf couple with a blind, autistic son, captured the hearts of millions on Extreme Makeover: Home Edition four years ago, but now the couple is on the brink of losing their dream house.

The Vardons told news reporters that their mortgage payment has doubled since the show aired and they are facing mounting medical bills due to their son's autism.

Back in 2004, the Extreme Makeover team renovated the family's tiny home near Detroit to make is safer for their 16-year-old son, Lance. After the makeover, the couple says they refinanced their mortgage, and since then their monthly payments have skyrocketed to $2,300.

In addition, the Vardons say they have medical bills totaling more than $20,000 and they are worried that Larry may lose his job at a local Chrysler plant amid the current recession.

"We didn't have bad spending habits," Judy Vardon told reporters. "My husband got laid off for a time, and insurance wouldn't cover Lance's autism therapy and some other things like his vision and special dental work."

Judy Vardon says she would be heartbroken if they had to move out of their home and is hoping that a local non-profit group will help negotiate a lower mortgage rate.

Learn more about Michele Cheplic

Michele Cheplic was born and raised in Hilo, Hawaii, but now lives in Wisconsin. Michele graduated from the University of Wisconsin-Madison with a degree in Journalism.

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Libby Pelham (12880) 11 Dec 2008 11:09 AM

I do feel sorry for the Vardon family, since their debt seems to be due mainly to medical bills, but I think there have been other families that have lost or been on the verge of losing their Extreme Makeover homes because they took out a second mortgage.