Once again, Grammy-winning and financially-challenged singer Toni Braxton is facing foreclosure. The Wall Street Journal reports that the holder of Braxton’s mortgage debt won bankruptcy court approval to start proceedings against her home in Duluth, Georgia. Braxton doesn’t own the property, a trust does. She owes $1.5 million on her mortgage, while the property itself been appraised at $1.2 million. She took out the mortgage in 2004 with Wells Fargo Bank and the lender later transferred its interest in the debt to a trust set up to administer a pool of mortgages for investors in those securities.According to the WSJ, Braxton earlier told the bankruptcy court she had wanted to stay in the home.
Braxton, filed for Chapter 7 liquidation last fall. She listed debts of $10 million and $50 million with assets in the $1 million to $10 million range. Creditors include Cedars-Sinai Medical Center, the Internal Revenue Service and Neiman Marcus. She had previously filed bankruptcy in 1998. The IRS had also filed a lien against her for $396,000.
