’90 Day Fiance’ Shocker: Michael Jessen in Foreclosure & Owes Back Taxes

90 Day Fiance alum Michael Jessen, husband of Juliana Custodio, is in financial hot water and facing foreclosure unless he can work out a deal with his mortgage lender. But that’s not the only issue he’s facing. With back taxes owed and rumors of marriage woes, what is happening?

Michael Jessen’s House in Foreclosure – The Big Home Seen on 90 Day Fiance

You might recall when Juliana Custodio came to Greenwich, Connecticut from Brazil, she and Michael were crammed into a small rental. Then, they married and he moved them into a nearly 4,000 square foot home. Juliana was thrilled but now they may lose the house unless he succeeds in foreclosure mediation.

Like many American business owners, Covid is taking its toll.  While some businesses (especially online companies) are thriving, Michael’s business seems to rely on him traveling and networking face-to-face. Things that haven’t happened in the past couple of years. Now, it seems he’s behind in taxes and his mortgage.

The lender filed a case to foreclose against Michael Jessen on June 28, 2021. They’re seeking immediate possession of the home and a judgment based on failure to make mortgage payments. According to the documents, the 90 Day Fiance husband bought the house in July 2019. But then in April 2020, stopped making payments.

90 Day Fiance: Michael Jessen

Michael Jessen purchased the house, as seen on 90 Day Fiance, for $1.195 million. The home has four bedrooms, four bathrooms, an office, two rec rooms in the basement. And it lists at nearly 4000 square feet. As well as being on the TLC show, the home popped up in videos and photos with him, Juliana Custodio, and kids Maxwell and CeCe Jessen.

Now, though, their home is at risk. Not only is there the lawsuit in place, but he also owes back taxes. See the case information above and also the delinquent tax info where a payment was due in July. On the township’s tax system, it still shows as outstanding.

Can Mediation Save the Jessen Home – Was Short Sale an Option?

The timeline for this 90 Day Fiance lawsuit suggests Michael’s trying hard to avoid foreclosure. And a quick glance at the home’s increasing value tells you that he’s got motivation in the form of hundreds of thousands of dollars of equity.

The court papers above show that Michael owes around $938k on the mortgage. The home’s value has gone up $285k since he purchased it in 2019. Realty sites estimate the house is now worth $1.48 million. After deducting his mortgage payoff, that leaves more than $540,000 in equity on the home. That’s a lot of money for the 90 Day Fiance ex-cast member to leave on the table if he walks away from the home.

90 Day Fiance: Michael Jessen

After his lender filed for foreclosure, Michael Jessen did two things, according to court documents and realty info. First, he applied in July and was approved for foreclosure mediation. The document below shows the court approved it in late July.

Second, the 90 Day Fiance dad of two briefly put the house on the market. They listed the house for sale on Thursday, August 26, but then the listing was removed that Saturday. As of now, the real estate MLS (Multiple Listing Service) shows the house as off the market.

Michael Jessen Working to Avoid Foreclosure – Mediation Set for November

The order below reflects that Michael’s mediation foreclosure request was accepted. The court scheduled it for Thursday, November 4, 2021. It looks to be a Zoom conference since it’s listed as “remote”. That means, as of now, Michael Jessen can remain in the home until the mediation concludes. But what does this mean and how does it work?

Michael Jessen foreclosure

By applying for foreclosure mediation, that means Michael and his lender will meet with a third party, impartial mediator to try and figure out a way to avoid them taking the home. The 90 Day Fiance spouse of Juliana Custodio will present his financial circumstances and a plan to avoid the lender from having to take the home.

Some of the options usually pursued are loan modification, deed in lieu of foreclosure, or short sale. Deed in lieu simply means the homeowner hands over the house and walks away and the lender forgives the mortgage, thereby avoiding the legalities. A loan mod allows the homeowner to negotiate new loan terms they can afford.

And a short sale is typical when a home is worth less than the mortgage. That’s not the case with Michael’s property. It could be that he just needed time to regain his financial footing, so a loan modification might be advantageous for the 90 Day Fiance alumnus. No doubt, he’d like to keep that equity.

Michael Jessen Owes Car Taxes Too – 90 Day Fiance Legal News

In addition to the delinquent mortgage payments and outstanding property taxes, Michael Jessen owes some back tax on his vehicles, per the local tax records. Connecticut localities charge property tax on vehicles. The official record shows back taxes owed. See below.

90 Day Fiance: Michael Jessen

90 Day Fiance star Michael has a 2017 Porsche 911 Targa, a 2008 Ford Mustang, and a 2018 Range Rover, according to the records. And he owes more than $1,200 in property tax for the three cars that seems to be unpaid as of this writing. The upside is that Jessen has an attorney representing him for the foreclosure case.

Now, it looks like Michael’s trying to avoid this foreclosure and either keep the home – or find a way to hold onto some of that equity. He’s got until November to put his plan together and convince his lender to accept the proposal. Soap Dirt will update you as we have more information on the case.

Many fans are worried about his ex-wife Sarah Jessen. But, her career is in real estate, which has had a booming market over the past two years.

The larger question 90 Day Fiance viewers probably have is – what happened? Michael Jessen seemed to be doing well and not hurting for money.

The answer, most likely, is the pandemic. You may recall that Michael’s luxury wine sales required travel and rubbing elbows with clients. With travel closed for COVID, it might have hit his business hard.