Lender Files Notice of Default on O.J. Simpson’s Brentwood Estate

A mortgage company has initiated foreclosure proceedings on O.J. Simpson’s Brentwood estate after the former football star missed more than $86,000 in payments, and one confidant doubted Friday that Simpson would be able to save his home.

Hawthorne Savings filed a notice of default this week with the Los Angeles County recorder’s office, stating that Simpson is delinquent in his mortgage payments.

The notice represents the first step toward foreclosing on Simpson’s Brentwood home, whose asking price has been estimated at $2.3 million. Simpson will have three months to pay the $86,305.62 bill to the El Segundo mortgage company. If he fails, the property can be sold at auction.

One close Simpson friend said the news came as little surprise.

“He expected it,” said attorney Leo J. Terrell. “He can’t afford to pay $33.9 million in judgments and afford to maintain his Rockingham home.”

Simpson was acquitted of killing his ex-wife Nicole Brown Simpson and her friend Ronald Lyle Goldman, but a civil jury found him responsible for their deaths and awarded a total of $33.5 million in compensatory and punitive damages.

“I don’t think it’s possible to bring the bill current because of his lack of income,” Terrell said. “What he does in the next three or four months is a decision I’m sure he’ll make with his advisors.”

Terrell said Simpson had not made a decision on whether to leave his Brentwood home, and he discounted reports that Simpson will be moving to Florida.

Several creditors have already filed liens against the estate. Fred Goldman, Ronald Goldman’s father, filed one for $19 million, the amount he was awarded by the civil jury, according to documents at the county recorder’s office.

The documents also show that Simpson’s criminal, civil and personal lawyers have liens against the property.

Simpson’s worth surfaced as a matter of contention during his civil trial. Attorneys for the plaintiffs argued that Simpson could garner millions of dollars in endorsements, personal appearances and by selling memorabilia. Simpson’s attorneys said he was broke.

Peter Gelblum, a member of the legal team that represented Fred Goldman during the civil trial, said that Hawthorne Savings would have priority on any funds from the sale of Simpson’s home because it holds the first deed trust. But Gelblum said the recording of the notice of default did not mean the automatic sale of Simpson’s home.

“He has the right to reinstate the mortgage,” Gelblum said.