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Prince’s Minnesota Home in Foreclosure?

by Minority Fortune

Prince may be embarking on a legendary mega tour at The Forum stadium in L.A., but he’s also potentially embarking on rocky financial terrain. Just days ago, various news sources reported that the singer was so behind on his mortgage payments that his home was set to be auctioned off on May 13. Now, Star Tribune reports that he has made good on his $368,000 past due mortgage payments.

Details on the house and previous financial woes follow:

The land, where Prince had a home until it was razed in late 2005, is valued at $1.15 million, according to county records. That’s down from more than $1.5 million just a year earlier. Prince took out a mortgage on the property in 1994 for $605,000.

The foreclosure is the latest of several financial delinquencies for the pop/rock star. About 11 months ago, he paid $1.3 million in current and delinquent property taxes that he owed for 2009 and 2010 on 14 parcels in the county, including Paisley Park, his recording studio in Chanhassen. He also was late paying his tax bills in the county in 2006 and 2008.

This particular property wasn’t such a bad investment as it’s managed to accrue value over the past 17 years. However, the property still has various upkeep costs and payments. If Prince finds that the costs outweigh the benefits, then he should sell it. Falling behind on payments shows a lack of financial responsibility. Hopefully, this doesn’t reveal a pending financial crisis with the singer.

No matter how en vogue it is to default on your home, it shows that one is living beyond their means. Even if someone argues that they have the money to make the payments but they don’t, they are still living beyond their means. Because foreclosing is a slower process, people think it’s perfectly ok to slack on their payments. Without fail, it gets out of control and always catches up to them. The lesson to learn from this situation is to pay up or put up and sell.

*Image courtesy of Star Tribune.
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