Court documents obtained by People reveal that Kim Zolciak and Kroy Biermann received a foreclosure warning from their bank lender, Truist, last week regarding their multi-million dollar Atlanta home.
Trust has set a deadline of May 3 for the couple to contest the foreclosure warning in court. If no action is taken by this date, the bank will proceed with non-judicial foreclosure proceedings to reclaim ownership of the Milton mansion.
However, even if the foreclosure process begins, immediate eviction from the property is not guaranteed.
The former couple has been attempting to sell the 15,000-square-foot mansion but has struggled to attract buyers. In January, they slashed the sale price by $1 million after initially listing the home for $6 million in October 2023, followed by a $500,000 reduction due to lack of interest.
This latest foreclosure threat came just one week after Truist warned of foreclosure due to mortgage default, expressing intent to seize the home unless the debt was settled through the property sale.
The seven-bedroom, 11-bathroom home previously faced foreclosure in 2014 and again in February 2023, but the couple managed to resolve the issues on both occasions.
Amid their ongoing divorce proceedings, Kim Zolciak has been grappling with financial challenges. She sold her skincare brand and listed designer items for sale online, but the couple’s debt has continued to accumulate.
Last month, a judge ordered Zolciak and her daughter Brielle Biermann to surrender their 2019 Land Range Rover to the lender Ally Bank, which claimed the pair owed over $80,000.
Additionally, Zolciak and Biermann reportedly owe the IRS more than $1 million in taxes, over $230,000 in a bank lawsuit filed last fall, and more than $150,000 in unpaid credit card fees.
