- Post 10 December 2012
- By Atlanta Daily World
- Hits: 417
Allen Iverson is in court again. The former NBA star filed a lawsuit against his mortgage company in order to prevent to foreclosure of his Atlanta home.
According to reports from TMZ, the $4.5 million home was set to be auctioned December 4 because Iverson defaulted on a $1.4 million loan. But the former MVP filed paperwork against the lender trying to seize the home, claiming he never consented to the loan and that his estranged wife signed the mortgage in an attempt to overextend his finances. The couple are in the midst of what's been called a nasty divorce.
The legal move was made for Iverson to buy more time to find money to pay off the loan, but it does not guarantee that he will keep the home.
The lawsuit over his Atlanta mansion is the latest in a string of money woes for Iverson. TMZ reported last week that Iverson – though still driving a $300,000 Maybach and earning $750,000 a year – was essentially bankrupt, spending $360,000 a month.
About a third of his debt is owed to creditors. his bank account was seized last year when he couldn't come up with $860,000 he owed to a jeweler –– and another chunk goes to his mortgages.
Iverson is also reportedly not spending his money wisely. Documents filed in his court case say he is spending money, "like $10,000/month on clothes, $10,000/month on grocery/house items, $1,000/month on dry cleaning, $5,000/month on entertainment, $5,000/month on restaurants," according to TMZ.
Iverson also previously defaulted on a $3.8 million home in Denver, according to HipHopWired.com.