http://sports.aol.com/fanhouse/2008/...097x1200073451
Sprewell's Home Was Foreclosed Monday
Matt WatsonPosted May 12th 2008 9:00PM by Matt Watson
Filed under: NBA Gossip, Milwaukee
Latrell SprewellFormer NBA player Latrell Sprewell officially lost his house Monday. From the Milwaukee Journal-Sentinel:
A River Hills home belonging to former NBA star Latrell Sprewell was foreclosed on today when he failed to show up in court to contest the action brought by a bank that held his mortgage.
The holder of the mortgage, RBS Citizens Bank, told Milwaukee County Circuit Court Judge David Hansher that Sprewell owes $320,284. According to River Hills records, the house is assessed at $610,000 and has an estimated fair market value of $667,980. Spreewell bought the house in 1994 for $405,000.
I know the automatic reaction among fans is to point and laugh at the silly athlete who didn't know how to manage his money, but there's nothing funny about foreclosure. I'm in the process of buying a house, and over half of the houses I walked through were both empty and in a sad state of disrepair as a result of frustrated owners taking it out on their property before losing it to foreclosure, which is becoming a sad trend in my state. After awhile, it's just depressing.
Money mismanagement affects people of all stripes and income levels, and it's sad when it's entirely self-inflicted by somebody who seemingly had it all before letting it slip away. So while some may crack jokes about Spree's regrettable "I've got a family to feed" quote he made while turning down millions of dollars toward the end of his career, I've lost my sense of humor about people losing their homes. Wherever Sprewell is, I feel for him.
If you were making millions a couple of years ago, why would you take out a morgtage, when you could pay up for it upfront, can't these people hire financial advisors or something?
Well, you know the saying: What comes around goes around.
Sprewell was asking for more money when he was making more money than 99.9% of the people on the planet.
Last edited by E20; 05-13-2008 at 09:53 AM.
not surprised by this at all ... he is a damn fool.
I'm guessing he has another home and doesn't really care.
For one thing, you can deduct the interest you pay on the mortgage from your taxes. This is true even if you own more than one house. Since the first payments are almost all interest, this is a good decision. By obtaining a mortgage, he also frees up his cash to invest in other areas.
He probably has a few houses.
According to basketball-reference he's made around $97 million in his basketball career. Unless he's REALLY bad with money he probably has more than a few houses.
not to mention all of the money that he has made in endorsements over the years which would push his career earnings to WELL OVER 100 million ... Spreewell is a damn fool.
Thats not good finance management to simply pay cash for everything. No advisor would ever recommend doing that.
So, you would recommend financing a $20 pair of pants???
I don't feel for him.
His words came to bite him in the ass, and I doubt he's hard up like us regular citizens in that situation, unless he went the "MC Hammer" route.
Dude. The house value is 600k, he owes 300k. If he sold the house, at market value, then he could repay and still keep 300k to buy another more than decent house. The fact he didn't even bother to show up in court tells me he's still blowing through wads of money.
This is Spree we're talking about here...
ya it is a HUD home!
+1 He's filthy rich and doesn't give a about that house...
He needs to choke himself.
didnt he recently lose a boat as well?
i know he had a rim store in new york that was doing pretty well... i'd imagine he still has some sort of steady income.
yeah because a half million dollar house and a pair of disposable 20 dollar pants are the same thing.So, you would recommend financing a $20 pair of pants???
I'm laughing.
He really did need more money to feed his clan.
That depends on the situation...
If you are paying $3000/month in interest, and can deduct the interest from your taxes, you save about $1000 on taxes, so you are still paying $2000/month for the loan - you better be making more than $2000/month from the money you are not using to pay off the house - if the money is just sitting in money markets or CDs, you are better off paying for the house in cash.
Also, since he had $3000,000 equity that he walked away from, he surely didn't get that advice from a financial advisor - he is just stupid (but everybody already knew that).
Hmmmmm.....sounds like choosing that 10 year interest first loan bit him in the ass. SURE you get to write it off your taxes.....but come on....get your main property out of the way first and then flip other houses.
why do we always find the bull to talk about people where are the positive
lets talk about Jaime Koeppe now that's sexy
What an idiot.
If he still has millions, I guess he is just lazy and doesn't give a damn.
I am too.
Hollywood celebrities also take out mortgages too you know, even though they make alot of money from movies and ...you dont hear about there struggles in the news, but its heavily do ented in current affairs programs...
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