Kim Zolciak and Kroy Biermann Sued by Bank for More Than $217K After Defaulting on Home Loan

Kim Zolciak and her husband, Kroy Biermann, are facing a lawsuit after they allegedly defaulted on a home loan. 

Court documents obtained by In Touch on Tuesday, July 11, show that Kim, 45, and Kroy, 37, defaulted on a Home Equity Line of Credit for their home in Alpharetta, Georgia. They now owe $217,443.32 to Landmark Community Bank after the institution claimed Kim and Kroy failed to make monthly payments on the loan.

Simmons Bank, which acquired Landmark earlier this year, filed a lawsuit against the couple in Fulton County state court on Wednesday, July 5, according to the documents. 

Kim and Kroy purchased the five-bedroom, six-bathroom mansion in 2012 and took out a $300,000 loan from Landmark in December 2013. In 2018, the bank arranged a 20-year payment plan for the remaining $271,788.61 at $1,132.46 a month. The first payment was due in February of that year. Kim and Kroy were supposed to continue monthly payments until January 2028, but they allegedly made their latest payment in October 2022. 

Landmark “terminated the Line of Credit” in May 2023 because the couple ​​“defaulted under the terms” of the agreement. Kim and Kroy also allegedly “refused to accept” a letter in which the bank informed them of the termination. 

In Touch confirmed in February 2023 that the Alpharetta mansion was in foreclosure and due to be sold at auction “to the highest bidder for cash,” according to a Fulton County foreclosure notice. Truist Bank was to oversee the selling of the property.

A source told In Touch at the time that Kim was “heartbroken” over the situation. “She’s a bragger at heart so this is super embarrassing for her,” the source said, noting that the Real Housewives of Atlanta star was “in denial” and “expecting a miracle.”

The lawsuit against Kim and Kroy also comes amid the couple’s dropped divorce. On July 7, Kim left fans in shock when she filed a request with the Fulton County Superior Court to have her divorce case dismissed “without prejudice.”

She and Kroy initially both filed for divorce after 12 years of marriage in early May, In Touch confirmed at the time. Kroy had claimed their marriage was “irretrievably broken” and a weeks-long legal battle ensued. They made several accusations against each other regarding gambling, drug use, and financial issues. Kroy even  filed for a “Motion for Psychological Evaluation” for Kim due to “troubling behavior” she exhibited in the months leading to their split. He also claimed that Kim “kidnapped” one of their minor sons.

Now, it appears Kim and Kroy are trying to work things out. The pair reunited on July 2 for a church service in Atlanta with their four youngest children, Kroy Jr., 12, Kash, 11, and twins Kaia and Kane, 9, as seen in paparazzi photos.