Kim Zolciak-Biermann and Kroy Biermann are facing a lawsuit after allegedly defaulting on a home loan — days after calling off their divorce.
The couple owe Landmark Community Bank a total of $217,443.32 after taking out a Home Equity Line of Credit for their Georgia property, according to court documents obtained by Us Weekly on Tuesday, July 11. The bank claimed that Zolciak-Biermann, 45, and Biermann, 37, failed to make monthly payments on the loan.
The pair allegedly took out $300,000 from the bank in December 2013 and were expected to make payments once it reached its original maturity date three years later. In August 2017, Zolciak-Biermann and Biermann extended the maturity date to the end of the year. They ultimately failed to meet their monthly dues — with their last official payment allegedly received in October 2022.
The bank arranged a 20-year payment plan with Zolciak-Biermann and Biermann in 2018 with final payment of the remaining balance due on January 24, 2038. In the paperwork, the bank noted that they “terminated the Line of Credit” in May 2023 because the duo “defaulted under the terms” of the agreement. Zolciak-Biermann and Biermann also allegedly “refused to accept” a letter from the bank notifying them of the termination.
Earlier this year, Zolciak-Biermann and Biermann made headlines for their legal woes when Us Weekly confirmed their mansion was in foreclosure. According to documents obtained by Us in February, the twosome’s property on Manor Golf & Country Club in Alpharetta, Georgia, was originally set to be auctioned off to the highest bidder one month later.
“The debt secured by said Security Deed has been and is hereby declared due because of, among other possible events of default, failure to pay the indebtedness as and when due and in the manner provided in the Note and Security Deed,” the documents read. “The debt remaining in default, this sale will be made for the purpose of paying the same and all expenses of this sale, as provided in Security Deed and by law, including attorney’s fees.”
The paperwork noted that the foreclosure proceedings began in August 2022 after Zolciak-Biermann and Biermann defaulted on their mortgage. The former reality stars, who tied the knot in 2011, previously denied speculation about their assets.
“Ok you guys, my house had not sold for $257,000,” Zolciak-Biermann explained in a November 2022 Instagram Story while showing off their house. “If you guys think I would let my home that we’ve put millions and millions of dollars into go for $257,000, you’re an idiot, okay? For real.”
The auction was ultimately canceled — and three months later Zolciak-Biermann and Biermann both filed paperwork to end their marriage after more than a decade together.
At the time, a source exclusively told Us that Zolciak-Biermann and Biermann issues got worse amid financial woes, adding in May, “The financial burdens have been a strain on their relationship. Between the tax debt and other financial stresses, it’s been difficult. The tax debt was the straw that broke the camel’s back in their marriage.”
Following a lengthy legal back and forth, Zolciak-Biermann and Biermann filed paperwork on Friday, July 7, to dismiss their divorce.
