Kim Zolciak & Kroy Biermann Face Another Lawsuit After Allegedly Defaulting On $300,000 Home Equity Loan
Kim Zolciak and Kroy Biermann have been hit with yet another lawsuit over an unpaid debt.
Allegedly, the pair defaulted on a Home Equity Line of Credit for their Alpharetta, Georgia home. According to legal documents, Zolciak, 45, and Biermann, 37, owe Landmark Community Bank a total of $217,443.32 with the bank claiming they have failed to make monthly payments on the loan.
The couple first opened a Home Equity Line of Credit in the amount of $300,000 with the bank in December 2013. They were expected to begin making payments on the loan once it reached its original maturity date in Dec. 2016. They executed a Modification Agreement in Aug. 2017 which extended the maturity date to Dec. 2017. Then in Jan. 2018, they filed a Second Modification Agreement, agreeing to make monthly payments of $1,132.46 after acknowledging they still owed $271,788.61. They were expected to make their first monthly payment in Feb. 2018 and complete paying off the loan in Jan. 2038.
However, the couple allegedly failed to make their monthly payments. The last payment was reportedly received on October 28, 2022.
Because the pair “defaulted under the terms” of the agreement, the bank “terminated the Line of Credit” in May 2023. As of April 1, 2023, the bank said the Biermanns owe $213k plus $1,700 in interest. Kim and Kroy have yet to respond to the lawsuit.
This isn’t the first time they’ve had issues with their Georgia mansion. The former Real Housewives Of Atlanta star made headlines after it was reported that her Alpharetta home was foreclosed and facing auction. They allegedly defaulted on a $1.65 million loan they took out in Oct. 2012 when they first purchased the home.
Zolciak took to her Instagram stories to aggressively deny the rumors surrounding her home. She said,
“My house was not sold for $257,000. If you guys think that I would let my home, that we put millions and millions of dollars [into], go for $257,000, you’re an idiot, OK? For real,”
Filming from inside the grand estate, she continued:
“So, what are you going to do, haters, when I’m here for Christmas, and I’m here for my birthday….and I’m here for all those amazing dates?….I’m here until I f*cking want to move out…. So enjoy the view, haters, ’cause you’re going to be seeing it for quite some time.”
According to reports, court documents show the home was indeed facing foreclosure in October 2022. It’s reported, however, that the debt was settled prior to the house actually making it to the auction block. The reported tax lien owed at the time was around $10,567.
In addition to the foreclosure frenzy, Zolciak-Biermann has also been ordered to pay American Express over $215,000 in debt. The suit said that Zolciak refused to pay a $215,925.90 bill despite numerous demands.
Zolciak and Biermann filed for divorce in May 2023 after 11 years of marriage. Over the last couple of months, the pair have been duking it out in divorce court and fighting over custody of their children. However, in a turn of events, the estranged couple changed their minds and decided to call off the divorce last week. Sources say they are currently getting along and they want to figure out how to make things work out – especially for the sake of their 4 young kids.
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