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Chamillionaire -- I Chose to Be Foreclosed On

6/3/2010 1:24 PM PDT BY TMZ STAFF

A Houston mansion owned by rapper Chamillionaire was repossessed by the bank recently after the place went into foreclosure -- but according to the rapper, it was all part of a calculated business decision. 

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TMZ has learned Chamillionaire lost the 7,583 sq. foot home -- which he picked up for roughly $2 million back in 2006 -- after failing to make several payments.

But, yesterday in New York we spoke with Chamillionaire -- real name Hakeem Seriki -- who told us he "decided to let that house go" because the real estate market had turned and the house had become a bad investment.

Chamillionaire also noted that he was never at the home because, "I was always on the road touring" adding, "I just didn't feel like it was a good business investment to pay that much mortgage for a house I was never at."

But Chamillionaire claims he's far from broke -- quipping, "I still got all the cars."

116 COMMENTS

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46.

brod77381    

@RH - I think you're the one who needs to do your homework before commenting on the subject. "Why keep burning money on something that will never regain it's value....happening alot in California." This house isn't in California, it's in The Woodlands just outside of Houston, TX. Texas, specifically Houston has one of the best real estate markets in the entire country right now - if you did your homework you would know this. I happen to live right around the corner from Chamillionaire's foreclosed house and I can assure you it wasn't worth "nothing" as he's claiming and it certainly wasn't worth less than what he paid for it. Why didn't he try and sell the house if he couldn't afford it? The bank sold the house in less than 14 days! http://search.har.com/engine/10-Hildene-Way-The-Woodlands-TX-77382_HAR42872242.htm



Bottom line is the house was foreclosed on because he didn't pay for it. He quit paying because he obviously doesn't have the money, not because the value of the house went down or it wouldn't have sold quickly. That story doesn't fly down here in Texas.



And just because "many people are doing the same" doesn't make it right or a good business decision to say the least.

1547 days ago
47.

ruh tuh    

What an ignorant Loser

1547 days ago
48.

Carl    

Riiiiight... maybe that excuse flies if you don't know anything about real estate. But letting a home get foreclosed hurts your credit and does not let you out of your mortgage. He would have been FAR better off selling the house at a loss and paying the difference. You only let it go into foreclosure if you can't afford it any more.

1547 days ago
49.

vgx    

Kinda' reminds me of your Gangtsa' President y-obama. Buying **** he can't afford.

1547 days ago
50.

NickSunset    

Should have stayed in school boy now you are going to have a tough life ahead of you. Ask Gary Coleman....what to soon?

1547 days ago
51.

NickSunset    

Chumpmillionaire in the near future I see your face being used as toilet paper buy the inmates in Cell Block B of the County Jail.

1547 days ago
52.

No Comment    

What a moron. I hope the bank goes after his other assets to offset their costs and home depreciation.



People like this make me sick. Karma is gonna get ya buddy!

1547 days ago
53.

Sad-Sad    

The Credit score companies aren't even a federal institution their private companies. Trans-Union, Equifax and Experian are ALL private. Credit scores are so over valued and taken way to seriously,,,it's not hard to remove a foreclosure off your credit report. Seriously, people do some research. you believe everything you hear???

1547 days ago
54.

Sad-Sad    

MANY PEOPLE DO THE EXACT SAME THING HE DID. IT HAPPENS MORE OFTEN THAN YOU THINK. IT'S CHEAPER TO LET A HOME GO INTO FORECLOSURE THAN TO DIG YOURSELF OUT. THE BANK WRITES IT OFF AS A "LOSS" ANYWAYS PLUS THEY STILL PROFIT FROM AUCTION. BANK WINS EVERY TIME. HE DID THE SMART THING...

1547 days ago
55.

Mike    

The only way you get to "give your house back to the bank" is if you're essentially bankrupt. When you sign a mortgage, you're signing a contract to pay back a debt, whether the house goes up or down in value is irrelevant to that contract with the bank. The bank simply needs to go to court, show the contract to a Judge, get a judgment and sick a bill collector on his ass. Either he's worth millions, and the bank will eventually get paid or he's bankrupt and the bank won't bother trying to squeeze blood from a stone.



He didn't do himself any favors, by announcing on national TV, and to the bank and bill collectors, that he's still worth millions. But, I don't think he's they type that thinks that strategically.

1547 days ago
56.

jess    

Why's everyone trying to make this racial? Tons of white people let their houses get foreclosed. I saw a dateline special on it where people were just letting that happen because their houses just weren't worth it anymore. And anyone who listens to his music knows that he does care about his credit..and I quote.."I used to be in love with my money, now I'm in love with my credit.I buy the bar with them dollas, I buy the building with debit. "

1547 days ago
57.

Gigi    

Houston's housing market is not that bad. He's full of it.

1547 days ago
58.

Dr Porn    

ASS-CLOWN!!!! Nothing like stereotyping our race!!!!!

1547 days ago
59.

JLS    

I don't know what the law is in Texas, but in a lot of states, they can sell the house and if it takes a loss, the bank can go after him for the difference. It was nice of him to let the bank know he has assets in case they want to pursue.

1547 days ago
60.

sandra    

that's why the housing market is the way it is, stupid asses like him!!!!

1547 days ago
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