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Report: Allen Iverson loses Atlanta mansion in foreclosure

Feb 6, 2013, 11:42 AM EDT

Allen Iverson

There have been a lot of reports over the years about the state of Allen Iverson’s finances, some suggesting he is in a serious hole.

This latest report — that he lost his Atlanta mansion, which was foreclosed on and auctioned off — seems to back that side of the tale up. From TMZ.com (via SLAM):

TMZ broke the story … Iverson allegedly defaulted on a $1.2 million mortgage which sent the $4.5 million home into foreclosure. He briefly fought off an auction … but ultimately, he couldn’t stop it.

Sources close to the sale tell TMZ … Iverson’s bank purchased the mansion yesterday for $2.5 million.

I want to believe the previous reports that Iverson has a trust set up and he gets a certain amount of money every year, that he is not broke. If course, getting an annual stipend doesn’t have anything to do within your means. Iverson also didn’t come off well in his divorce proceedings this week.

Iverson says he wants one more shot in the NBA but has turned down a path back to the NBA through the D-League. After his performance on and off the court his last year in the NBA before, teams are not going to give him a chance unless he goes to the D-League or Europe and proves he is physically and mentally right. I think the end result is Iverson will never be back in the league as a player. A consultant, maybe. But not a player.

  1. tannethrill - Feb 6, 2013 at 11:46 AM

    He’s done playing in the NBA and everyone seems to know that except him.

    • goraidersgospurs - Feb 6, 2013 at 11:59 AM

      I will never belive Iverson is broke I mean Reebok just RE-release his shoes and they sold out in one day I’m sure he gets a % of that & you mean to tell me if AI did an autographed tour no 1 will show up? Or if he started a basketball camp no parents would pay to have there kids attend? I mean there is soo many ways for a guy that is soo well known as iverson to still get money!!!

      • pellypell - Feb 6, 2013 at 12:29 PM

        Being broke for this guy is not the same as being broke for you and I.

      • louhudson23 - Feb 6, 2013 at 1:46 PM

        His problem is not what he makes.It is what he spends. As it is for many ,many people,just with several less zeros…..

  2. sasquash20 - Feb 6, 2013 at 11:47 AM

    Atlanta sucks anyway AI

  3. tombstone7 - Feb 6, 2013 at 11:47 AM

    “We’re talking about foreclosure…..foreclosure……foreclosure!”
    Keep on keeping it real Mr. Iverson,you have noone else to blame for your misfortunes

    • badintent - Feb 6, 2013 at 11:33 PM

      Gotta be the Chains
      Gotta be the hoes
      Gotta be the cars

      Ya got no $$ , got no car, got no girl and there you are So BUSTA A MOVE

  4. ajsjr40 - Feb 6, 2013 at 12:19 PM

    When a $4.5M mansion sells for $2.5M it is then a $2.5M mansion. If his mortgage was $1.2M it looks like he made a cool $1.3M.

  5. giantssb42champs - Feb 6, 2013 at 12:25 PM

    Didn’t see this coming.

  6. 1509lucky - Feb 6, 2013 at 12:43 PM

    When a $4.5M mansion sells for $2.5M it is then a $2.5M mansion. If his mortgage was $1.2M it looks like he made a cool $1.3M.
    ——————————————————————————
    NO that is the amount that was owed to the Bank. Iverson didn’t make ANYTHING he defaulted on his Mortgage and Lost the House. the Bank is the winner,because they got whatever he paid on top of getting back the House.

    • abchome - Feb 6, 2013 at 1:55 PM

      Of course not. Any excess of foreclosure sale goes to the mortgagor (AI).

      • mazblast - Feb 6, 2013 at 10:32 PM

        Any excess of sale price over the mortgage goes to other secured debtors first. When I was foreclosed upon (strictly my fault), the mortgage company got theirs, the county got their back taxes, and there was some left, which wound up being applied to my home equity line of credit. It didn’t pay off the latter, but it got the balance down to a reasonable number, which I eventually paid off.

    • genericcommenter - Feb 6, 2013 at 3:12 PM

      I don’t know why the thunbs-up and down are running the opposite of reality here. Perhaps the article is wrong, but if we take the article’s figures as facts, it says he only owed $1.2 to the bank. He didn’t owe $4.5 million. The $4.5 million is either a phantom appraisal number or perhaps he purchased for $4.5 but only financed $1.2 million and/or had paid it down to $1.2 million before missing payments.

      Follow along here. The mortgage is a secured loan. The property secures the loan. The property can be sold to satisfy the loan, but the bank only gets $1.2 million. Now, the bank probably is going to add some fees to that, but there’s no way the fees can total over 100% of the mortgage. The bank is entitled to an ownership level up to its stake.

      The bank doesn’t get to simply keep excess profit on top of the mortgage they already profited from. That’s not the way it works in any society with laws. It’s rare that a property sells for more than what’s owed, so normally you are looking at a deficiency after the sale- in home foreclosures and car repos. Some states allow the banks to obtain judgments for the deficiencies and some don’t, but never does the bank get more than what is owed including the normal fees. I mean, I guess I could see where the money wouldn’t end up in the rightful place somehow if the owner is a neglectful alcoholic who is unwilling to have legal representation or generally care about his life. Sometimes you have to followup on things.

  7. sargespeak - Feb 6, 2013 at 12:49 PM

    He should move in with Larry Brown.

  8. eugenesaxe - Feb 6, 2013 at 1:02 PM

    It’s impossible for me to feel bad for someone who made as much money as he did and can’t meet his obligations. Just more proof that stupid people shouldn’t have money.
    Also, he wants back in the league, but isn’t willing to work for it. Yeah, potential employers love that attitude.

  9. hornet0123 - Feb 6, 2013 at 1:11 PM

    The bank DOES NOT get to keep what paid beyond what is owed them or any other liens on the house.

  10. louhudson23 - Feb 6, 2013 at 2:00 PM

    The numbers are a bit strange on the house.A.I. owed 1.2 million. He defaulted and “his bank” bought the house for 2.5 million. So if his bank was not the lien holder, they bought it either to sell back to Al somehow,or they see it as worth more than 2.5 million on the open market. So rather than Al sell it and pocket the equity,his bank watched it foreclose and now they own it outright.Apparently his bank would not loan him 1.2 million on a house they eventually paid 2.5 million for….

  11. mantastic54 - Feb 6, 2013 at 2:08 PM

    I can’t for the life of me figure out why these athletes that make tens of millions of dollars even get mortgages. Just buy the house with straight cash homie

    • mayortito - Feb 6, 2013 at 8:13 PM

      people with massive amounts of money get extremely low mortgage rates. the rate is usually below the inflation rate and one is essentially borrowing the money for free. the person then has financial flexibility to invest in other opportunities since they initially only spent 500k instead of 4.5 mill total value . that is 4 mill available to invest. it is a sound business move as long as you actually pay the mortgage and do not blow that 4 mill making it rain, buying new clothes in every city your team plays, and other incredibly fun but stupid ways.

    • mazblast - Feb 6, 2013 at 10:25 PM

      Stop making sense.

  12. sportsnut101 - Feb 6, 2013 at 2:08 PM

    If he was smart n had money. The house was 4.5 mil. Sold for 2.5 mil n he owes 1.2 that’s 3.7. He coulda just bought the house for cheaper n saved money

    I don’t understand why he doesn’t write a book of is life do a signing make money or release the iverson shoes n have a show signing with every purchase. If wrestlers can make 50 bucks for signing n pics. I’m sure he can

    • bougin89 - Feb 6, 2013 at 6:58 PM

      I’m just SMH at this comment. I’m wondering if AI had you as his financial planner.

  13. michaeljordanseviltwin - Feb 6, 2013 at 3:20 PM

    Allen Iverson news is no longer NBA news. Please stop posting about him.

  14. 202folife - Feb 6, 2013 at 5:51 PM

    Sure hope you were kind to all the people you met on your way up A !, cause you’re surely about to meet them again.

  15. noring4youstill - Feb 6, 2013 at 6:14 PM

    Payments? We’re talking about payments?

  16. asyoulay69 - Feb 6, 2013 at 9:55 PM

    Poor guy, I feel really bad for him.

  17. mazblast - Feb 6, 2013 at 11:34 PM

    If the $4.5 million is what he paid for the house and if the $1.2 million was the only mortgage on the place, then the bank gets the house, the mortgage is paid, and the remaining $1.3 million ($2.5 less $1.2) goes to Iverson. AI is then out $2 million ($4.5 less $1.2 = $3.3 less $1.3), and BTW, that is not a tax-deductible loss.

    Does anyone know what county the house is in? I can do more research if I know that.

  18. FinFan68 - Feb 7, 2013 at 1:11 AM

    I don’t get how multi millionaires owe money on stuff. If he made millions and bought the house instead of mortgaging it there would be no foreclosure. The property taxes and utilities/insurance would be all he needed to pay on. The interest tax write off to save money actually cost him.

  19. testmyriad - Feb 7, 2013 at 1:30 AM

    answer

  20. daddyghi - Feb 7, 2013 at 9:48 AM

    Its probably true that AI is broke. But this report is from TMZ… Come on people?! do you really believe in those guys? the numbers doesnt even make sense!

  21. cornbreadbbqred - Feb 7, 2013 at 11:14 PM

    I think the larger concern is that the article has a number of grammatical lapses, which pales in comparison to the illiteracy demonstrated by Iverson advocates in the commentary. “C’mon, we talkin’ practice….. practice!” Game time, AI, in the school of life now!

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