As of today, the list of celebrities facing foreclosure isn’t long but you wouldn’t think that by reading newspaper and blog headlines or tuning in to national news reports from the likes of CNN, CNBC, ABC World News Tonight, and others (oh, and don’t forget Larry King Live… he featured one celebs’ story during last night’s show). In fact, the only celebrities we are able to identify as facing foreclosure in 2008 are:

• Marion Jones (athlete - track and field)
• Jose Canseco (athlete - baseball)
• Michael Jackson (entertainer - music)
• Latrell Sprewell (athlete - basketball)
• Aretha Franklin (entertainer - music)
• Ed McMahon (entertainer - talk show)
• Evander Holyfield (athlete - boxing)

Still, while the numbers are low and are sure to grow, the mere fact that some of the wealthiest and well-known people on the planet are now facing foreclosure is very telling, and, may in fact signal a new discovery in real estate and mortgage fraud forensics.

For example, is it possible that Ed McMahon, Aretha Franklin, Evander Holyfield and other celebrities never really qualified to own their palatial homes in the first place? Of course it’s possible… in fact, it’s more likely the case than not! How can I state such a thing, especially in light of the money these people reportedly earn? that’s easy…

What do most people do when they encounter a celebrity? Stare, point, stumble all over themselves, try to act cool like it’s no big deal, ask for an autograph, take pictures, offer to buy them a drink, yada, yada, yada. The simple fact is this… we tend to place celebrities on pedastools, and I’d bet you dollars to donuts that Realtors, financial advisors, bankers, mortgage brokers and loan officers do the same. They see a celebrity walking down their hall and they think one of two things… how wonderful would it be to say “I’m Ed McMahon’s Realtor” or loan officer, and, “I wonder if I can get an autograph or get Mr. McMahon to endorse my services to his wealthy friends and business associates.”

In those moments–when the Mr. Holyfield’s of this world are asking for a real estate industry insider’s help in acquiring a home (in this case, a 235-acre estate–click on image to left to see for yourself–that surrounds a 109-room, 54,000 square-foot house complete with 17 bathrooms, three kitchens, and a bowling alley)–don’t you think the Realtor, mortgage broker, loan officer or banker is going to do anything possible to make Mr. Holyfield happy, even if it means fudging numbers to make sure a loan is approved? If for one second you don’t think this is entirely possible, then I say it’s time to wake up and smell the order coming from the floorboards.

Our society places way too much stock into the welfare of celebrities and those like them. I bet you that if we were to audit Ed McMahon’s, Aretha Franklin’s, or Evander Holyfield’s real estate-related files, we would find that their finances were manipulated at some point in time by financial advisors and others to make it appear as if they qualified for their home loans. Just because they’re rich and famous doesn’t mean that they automatically qualify for large loans; and as I said, I wouldn’t put it past an aggressive autograph seeking/commission generating financial advisor, Realtor or loan officer to do anything they could to earn that business, including, knowingly engage in real estate and mortgage fraud.