Bankrupt Kerry Katona and mum to lose their homes in New Year
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BANKRUPT I'm A Celeb winner Kerry Katona will be evicted from her home, after being told by the mortgage lender: We don't care if you're a celebrity - get out of here!
The devastated mum-of-four has not made the repayments on her £1.5 MILLION Cheshire mansion FOR MONTHS, so will be made homeless in the New Year.
Kerry, 29, broke down in tears when she received the repossession order forcing her and the family out on the streets after Christmas.
It means the disgraced face of supermarket chain Iceland may have to move BACK into a council house in Warrington where she grew up.
The reality TV star can't even move in with her mum Sue - because she's being evicted too. Kerry owns Sue's house and it has to be vacated in less than a month so it can be sold to pay the mounting debts.
Hysterical
Last night, a source close to the star told us: "She was totally hysterical when the letter arrived.
"She hasn't paid the mortgage because she's been squandering what money she has left.
"Kerry seemed to think she was immune from losing her home. She really didn't think that she, Kerry Katona, would have her house taken from her.
"But now the reality has hit hard - there is no going back, Kerry has lost her home for good. It is too late to negotiate with the mortgage lender, they have given her too many chances.
"She has just a few weeks to find somewhere to live but she knows it is probably going to be back in a council house in Warrington where she grew up."
The move would complete troubled Kerry's fall from Queen of the Jungle to penniless mum. She was declared bankrupt last year for failing to deliver the final £92,000 of a £467,000 tax bill.
She then lost her MTV reality show and a £290,000-a-year contract with Iceland after the News of the World obtained a video of her snorting cocaine at the plush home in Wilmslow.
The source added: "She was sobbing the other day about going back on benefits - but she has little choice. She worked so hard to become successful and rich. All she ever wanted to do was turn her back on her roots.
"Kerry's been a fool with money - signing on is the next step."
But it turns out Kerry COULD have kept the home she shares with husband Mark Croft, 39, and her kids - Molly, eight, Lilly-Sue, six, Heidi, three, and two-year-old Max - if she had taken control of her spending. The trustees in charge of her finances have been allocating her £8,000 every month to pay her mortgage.
The source added: "All the wages have gone to the trustees dealing with the bankruptcy. They had control of her earnings because she made a fortune from MTV, Iceland and mag deals.
Squandered
"They didn't want Kerry's family on the streets so all of her living costs were budgeted for - but Kerry squandered the money.
She has spent thousands buying Mark costly supercars including Range Rovers, BMWs, Mercedes, Aston Martins, an Audi, a Lamborghini, a Ferrari and Porsches.
"Instead of paying the mortgage and being sensible, she has continued with her millionaire lifestyle and run up £200,000-worth of fees concerning her bankruptcy," added our source. "The mortgage should have come first but Kerry thought she could wriggle out of it.
"Now she's literally lost the roof from over her head."
Deloitte, the firm dealing with Kerry's bankruptcy, said: "Whether somebody is bankrupt or not they must pay their mortgage or face losing their home."
Sue, 50, will be the first one to move out. She's been advised to leave the Warrington property by January 15. Kerry bought it in 2001 for £37,500 with money earned from being in Atomic Kitten. But it remained in her name and so the house, now worth £130,000, was seized to pay off tax debts.
Heartbroken Sue admitted: "I never expected that my own daughter would see me on the streets but it's going to happen - and very soon.
"A few years ago she was bringing in £3 million a year and now she's a total mess - and I'm homeless because of it. She's ruined her life and now she's ruined mine."
Kerry, who has been in rehab four times because of her drink and drug problems, recently admitted her worst fears were to become homeless and on benefits.
She sobbed: "I don't have an income, so how am I going to live? They'll repossess the house and I'll have to sign on the dole."
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This article has 3 comments
Kerry you are not the first woman to be taken in by a lowlife man just remember you done it once and you can do it again you are young enough to rise again.
so get up and get cracking you are still beautiful and I am praying for you. Give your love to your 4 beautiful children and you will find in time that a man who deserves you will come when you don't realise it.
By EILO OHANLON.. Posted April 3 2010 at 10:47 AM.
so why doesnt she just do the most sensible thing and downsize, sell her cars, sell her house, silly cow, she could do with abit of growing up if you ask me. does she think that just because shes famous she will be treated differently, no shes going back on doll, when certain people depend on that money, shes had a chance to have a life of luxury and shes just blown it, tough, i hope she enjoys living out of a cardboard box.
By Amy.. Posted January 10 2010 at 11:26 AM.
Fair play. Should of thought of that earlier darls.
By Anna.. Posted January 9 2010 at 11:11 AM.