The rapper Common found himself the target of a common foreclosure action by Bank of America. The bank says that Common is $345,389 arrears on his Chicago condo.
Common, also known as Lonnie Lynn, and his manager Derek Dudley apparently own the 1,248 two-bedroom, two-bath condo together as an investment property and have been renting it out, reports Chicagoist. Bank of America says that the rapper and his manager have not made a payment since March.
It's likely that some of Common's "people" simply forgot about the property and neglected to make the payments. Regardless of the reason, Common may now have to work out a plan with the bank if he wants to keep his property.
When a homeowner faces the possibility of foreclosure, the homeowner can generally take several steps to prevent foreclosure from actually happening. Typically, these steps include addressing the problem early, learning about your rights against foreclosure, and responding to all your mail from the bank.
As Common did not reside in the condo and probably delegates the handling of his day-to-day financial affairs, there's a good chance that he simply was not aware of the foreclosure mess until it was too late. As a result, Bank of America filed the foreclosure documents.
Despite the fact that the paperwork was filed, Common may still be able to keep his property. Starting off, he may be able to simply pay off his debt. Or, the rapper may be able to negotiate a repayment plan or loan modification with Bank of America.
Common has an advantage over most borrowers as he probably has enough money to simply pay off his debt and avoid the common foreclosure of his Chicago condo. However, for the majority of borrowers, you'll have to address the possible foreclosure much earlier and not wait for the bank to file the foreclosure documents before working on keeping your property.