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Justin Bieber

The Housing Crisis

Is Hurting Me Too!

3/28/2012 5:00 AM PDT BY TMZ STAFF

0327_beiber_house_tmz_compsite_ex
Justin Bieber is suffering the effects of the housing crisis ... just like millions of other homeowners ... because he can't get the mortgage he wants on the house he wants to buy.

TMZ broke the story ... Justin has made an offer on a 9,000 square foot estate in Calabasas, CA ... a ritzy area with gated communities 20 miles from Hollywood. We've learned the hang-up is that the property didn't appraise near the asking price of $7+ million. 

Justin could easily afford to plunk down the asking price, but we're told his business manager has insisted that he take out a mortgage, because it makes good financial sense. But we're told the appraisal has come in significantly under asking -- more than a million under. As a result, Justin can't get the mortgage his business manager wants.

So Justin and the seller are haggling over price, trying figure out if they can agree on a price that will allow the 18-year-old to get a mortgage. We're told Justin is willing to pay $6 mil but the seller is blanching because he sunk way more than that into the property.

It's tough for everyone in these difficult times. Well, not really.

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57 COMMENTS

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16.

Binah    

Do you people who post spam think we really read that stuff and actually click on the link? Secondly, paying interest to anyone is not a financially sound investment. You should be making interest, not paying it.

849 days ago
17.

HMichaelH    

This kid must be a moron! How can this be to his disadvantage? All he has to do is cancel the original offer, and then submit a new offer at the lower appraised price. He saves a couple of million.

849 days ago
18.

Truth    

THIS JACKASS SHOULD BE DEPORTED BACK TO VANCOUVER WHERE HE CAME FROM. NUFF SAID. #TRUTH!!

849 days ago
19.

Cindy J.    

I'm a Realtor in Texas, When this occurs, and if the sale is to move forward, seller can only sell at the appraised price, not a penny above, or seller or buyer can cancel the sale and receive all escrow/monies back...Do not pay more than a property is worth.....Bad problem....Simple solution....Good Luck Beibs!!!

849 days ago
20.

lynn    

Paying cash is fine but you don't pay a million over what a house appraises at. Fair market value puts it at 6 million. If he pays 7 cash and wants to move out next yr after he is bored with it HE will not get the 7 back. Wow, his life must be so tough. I see him getting older and fading off in a few yrs-he does not have talent of Timberlake who can act, host and sing. Beiber's voice might finally change and they will have to make him sound good-even more than they do now-like B Spears. Stupid of him to buy 7 million dollar home. He's probably never home much anyways-get something else if you have any brains.

849 days ago
21.

Curtis    

Is it my imagination or does he look JUST like Julie Andrews?

849 days ago
22.

STFUP    

Um... BOO FVCKING HOO!
-
I wish this HIGHLY overrated punk would just disappear. His so-called 'music' is just the same old pop garbage that everyone is pumping out today. No originality.

849 days ago
23.

peachpie    

Justin's manager is crazy. There will never be a better time to pay cash for a house. He is so lucky to buy a house now they are dirt cheap! Don't get a mortgage. The banks are like making a deal with the devil. Pay cash!!!! Just because you are rich you don't have to be stupid. if the seller won't come down and you love the place buy it. You only live once. Fame is fleeting but debt can be for ever. lavernholloway@realtor.com

849 days ago
24.

Tucker Kao    

Check out the floor plan of this 16,700 square foot mansion I designed.

Main Floor - http://i42.tinypic.com/34o82sn.jpg
Second Floor - http://i44.tinypic.com/e13ibs.jpg
Basement - http://i41.tinypic.com/2rcaf5u.jpg

Round beds most suitable for some polygon shaped bedrooms.

I want to send this to Justin Bieber - please help.

849 days ago
25.

Mike    

I loathe Justin Bieber. Hate isn't a strong enough word.

849 days ago
26.

MooCow    

what kind of idiot "financial manager" recommends that it makes "financial sense" to borrow money and pay for that priviledge when you could easily pay cash? In the not far off future we're going to see an article that the Biebs is suing his former advisor for mismanaging and/or stealing his money.

849 days ago
27.

USArmy    

I think he should pay off whatever property he buys despite what his manager says. I wish I had the money to pay off mine. You should have a place to lay your head if something should happen and you don't have that money stream coming in.

848 days ago
28.

Sam    

Who gives a damn about Justin my balls haven't dropped yet Beiber lol.

848 days ago
29.

Dymond    

get a NEW business manager u should not pay interest on a 7M loan. He's taking him to the cleaners.

848 days ago
30.

Keith    

His business manager is an idiot. Why would you pay any interest if you didn't have to? Hey Justin, need a new business manager who understands math? A $9 million mortgage will cost you over $20 million.

848 days ago
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