The ACE Family lost ownership of their $10 million mansion and could face eviction
The YouTube stars Austin and Catherine McBroom may face eviction from their $10 million home.
Videos on their ACE Family channel often take place in the Los Angeles megamansion.
The property was returned to its lenders after a foreclosure sale failed to attract buyers.
Austin and Catherine McBroom show off what looks like a fairy-tale lifestyle on their ACE Family YouTube channel, which has more than 19 million subscribers. The family, which includes two daughters (ages 3 and 5) and a 1-year-old son, moved into a massive $10.1 million Los Angeles mansion in 2019 that's featured in most of their videos.
But property records obtained by Insider show their idyllic lifestyle could be in financial peril.
The McBrooms serve as CEO and secretary of Ace Hat Collection Inc., the umbrella company for the ACE Family. Public property records show that Ace Hat Collection signed a deed of trust - a legal agreement between a lender, a borrower, and a trustee - for the Los Angeles property on July 19, 2019.
By May 2021, the property was at risk of foreclosure, in a legal stage known as preforeclosure. On October 19, it was returned to the beneficiary - a legally designated entity that receives benefits from financial products - when it did not receive bids at a public foreclosure auction. In this case, the beneficiary is a financial lender called 5 Arch Funding Corporation.
The McBrooms no longer own the home, the records show. However, because of California's nonjudicial foreclosure law, 5 Arch Funding Corporation would need to file and win an eviction lawsuit to make them leave the property - so they won't be evicted if they voluntarily leave or pay their remaining debt. Otherwise, a lengthy legal eviction process could take place.
When reached by phone, a lawyer representing Ace Hat Collection - the McBrooms' company - said he couldn't comment on the foreclosure auction or the status of the estate. Other representatives for the McBrooms didn't respond to requests for comment.
The property's trustee, the debt-collection company California TD Specialists, didn't immediately respond to a request for comment.
With their millions of YouTube subscribers, the McBrooms have been the subject of online chatter for years regarding their lavish lifestyle. The first online source to surface property records related to their foreclosure was a gossip forum called Lipstick Alley that speculated earlier in the year that the McBrooms were in financial trouble.
A document suggesting their home was in trouble leaked in July 2021
According to a notice of default issued by a debt-collection company and served to the McBroom residence on May 21, they had 90 days to pay back $8.7 million they owed their lender. Then, on August 30, a notice of trustee's sale was sent to the McBrooms that stated their property would be up for sale at a public auction for an estimated $9.3 million.
The debt-collection company's notice leaked online in July, following revelations that Ace Hat Collection was approved for a $108,332 federal loan from the Paycheck Protection Program in May 2020, according to ProPublica's database of beneficiaries of the program. Ace Hat Collection used $20,000 of the loan to pay off mortgage interest in 2020, the ProPublica database shows.
Both Austin and Catherine McBroom denied rumors they would be evicted.
"Ain't nobody getting evicted, ain't nobody moving," Austin wrote on Instagram on July 8, the day after the notice of default leaked online. "Stop believing everything you see the haters say on the internet!"
Catherine McBroom wrote on Snapchat on July 19 that the chatter around her house's foreclosure was a "blessing."
"All the false narratives and untrue rumors have been a blessing in disguise," she wrote. "They made me appreciate how blessed I am and get closer to God. I feel so alive!"
The McBrooms' $10 million mansion moved to foreclosure in 2021
An online listing for the auction says the property was listed at a starting bid of $9.07 million on October 19 and was returned to the beneficiary after the auction. Video footage of the auction was captured by a YouTuber called Static Jon.
No bids were entered in the auction, which requires bidders to put down the total sum of cash on the spot, according to California nonjudicial foreclosure law.
In his video, Jon asked an auction attendee whether it was normal for homes like the McBrooms' to go on sale.
"Nine million?" she responded. "No, that's not normal for these guys."
The McBrooms are involved in a slew of other lawsuits
The foreclosure on their megamansion is just the latest scandal that's plagued the ACE Family.
Austin McBroom's company Simply Greatest Productions was sued by the media company LiveXLive. A lawyer for LiveXLive told Insider that McBroom's boxing event was built on a "stack of lies." LiveXLive asked for $100 million in its suit, alleging a failure to fulfill contracts.
Catherine McBroom was sued by TBL Cosmetics Inc., a manufacturing company that created and distributed 1212 Gateway. The civil complaint against her, viewed by Insider, alleged that McBroom staged a "coup" of the skincare brand in an effort to stop TBL Cosmetics from profiting from 1212 Gateway.
Ace Hat Collection has also petitioned two separate construction companies this year in the Los Angeles County Superior Court system to try to release mechanic's liens, which are typically filed by contractors who never received payment for a completed project or supplies they provided. One petition was denied by a judge; the other is awaiting judgment.
A lawyer representing Ace Hat Collection confirmed to Insider that on October 5 he filed a notice of appeal on behalf of the company's civil petition against a heavy-machinery company that holds a mechanical lien over Ace Hat Collection.
The McBrooms have not yet addressed foreclosure discussions publicly. Austin McBroom hasn't posted to Instagram since June 20, while Catherine McBroom most recently posted an ad for her Poshmark page, where she sells her used clothes.
Read the original article on Insider