Exclusive: Kim Zolciak and Kroy Biermann Embroiled in Shocking Lawsuit Over Home Equity Loan Default - Must Read!

Kim Zolciak and Kroy Biermann attend the Grand Celebration event at Seminole Hard Rock Hotel Ralph Notaro/MEGA

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Kim Zolciak-Biermann and Kroy Biermann are being sued by Landmark Community Bank for failing to make monthly payments on a home loan. The couple had taken out a Home Equity Line of Credit for their property in Georgia and currently owe a total of $217,443.32. Interestingly, this lawsuit comes just days after the couple called off their divorce.

The pair reportedly withdrew $300,000 from the bank in December 2013 with the intention of repaying it when it matured three years later. In August 2017, Zolciak-Biermann and Biermann extended the maturity date until the end of that year. However, they failed to meet their monthly payments, and their last documented payment was supposedly received in October 2022.

In 2018, the bank arranged a 20-year payment plan with Zolciak-Biermann and Biermann, with the final payment of the remaining balance due on January 24, 2038. The bank officially "terminated the Line of Credit" in May 2023 due to the duo's failure to comply with the terms of the agreement. Moreover, Zolciak-Biermann and Biermann allegedly refused to acknowledge a letter from the bank notifying them of the termination.

Earlier this year, Zolciak-Biermann and Biermann faced legal troubles when it was confirmed that their mansion was in foreclosure. In February, documents obtained by Us revealed that their property in Manor Golf & Country Club in Alpharetta, Georgia, was originally scheduled for auction one month later.

"The debt secured by the Security Deed has been declared due due to various possible events of default, including failure to pay the indebtedness as specified in the Note and Security Deed," stated the documents. "In order to settle the remaining default debt, this sale will be conducted to cover the outstanding amount and all associated costs, as outlined in the Security Deed and legal regulations, including attorney's fees."

The foreclosure proceedings commenced in August 2022 following Zolciak-Biermann and Biermann's mortgage default. Despite previous denial of rumors regarding their assets, the former reality stars, who got married in 2011, eventually faced this financial setback.

Zolciak-Biermann took to Instagram Story in November 2022 to clarify the situation regarding their house's sale. She vehemently dismissed the notion that their cherished home, which had undergone substantial investment, was sold for a mere $257,000. In no uncertain terms, she expressed disbelief at anyone entertaining such a notion.

The auction was eventually called off, and three months later, Zolciak-Biermann and Biermann both filed for divorce after being together for over ten years.

According to an exclusive source, Zolciak-Biermann and Biermann's problems intensified due to financial difficulties. In May, the source stated, "Their relationship has been strained by the financial burdens they are facing. Dealing with tax debt and other financial stresses has made it challenging. The tax debt was the final blow that led to the end of their marriage."

Following a lengthy legal back and forth, Zolciak-Biermann and Biermann filed paperwork on Friday, July 7, to dismiss their divorce.