22 million YouTube viewers were able to see the lavish McBroom home of the McBroom family. YouTube/The ACE Family
YouTube stars Austin McBroom and Catherine McBroom could be evicted from their $10 million house.
Many videos on the ACE Family channel are shot in the LA mega-mansion.
After a failed foreclosure sale, the property was returned to its creditors.
On their ACE Family YouTube channel with more than 19,000,000 subscribers, Austin and Catherine McBroom showcase what seems like a fairytale lifestyle. The McBroom family includes two daughters, aged 3 and 5, and a 1-year old son. They moved into a $10.1 million Los Angeles home in 2019, which is featured in many of their videos.
However, property records obtained from Insider indicate that their idyllic lifestyle may be at risk financially.
McBrooms are the CEO and secretary for Ace Hat Collection, Inc, which is the umbrella company of the ACE Family. According to public records, Ace Hat Collection executed a deed-of-trust - a legal agreement between an ace family member, a borrower and a trustee - on July 19, 2019.
The property was in danger of foreclosure by May 2021. This stage is known as preforeclosure. It was returned to the beneficiary on October 19, which is a legally-designated entity that receives financial benefits. The property was not sold at a public foreclosure auction. The beneficiary in this case is 5 Arch Funding Corporation, a financial lender.
According to records, the McBrooms don't own the property anymore. California's non-judicial foreclosure law means that 5 Arch Funding Corporation must file an eviction suit to force them to leave the property. This will ensure that they are not evicted if any of their debts are paid or they leave. A lengthy legal eviction could be necessary.
In September 2019, the McBrooms displayed their luxurious vehicles outside of their mega-mansion. YouTube/The ACE Family
A lawyer representing Ace Hat Collection, Inc, McBroom's firm, said that he couldn't comment on the foreclosure auction and the status of McBroom's estate when contacted by telephone. Insider reached out to other McBroom representatives but they did not respond.
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Insider reached out to California TD Specialists for comment but the trustee of the property didn't respond immediately.
The McBrooms are a popular topic of discussion online, with more than 19,000,000 YouTube subscribers. Lipstick Alley, a gossip site that speculated that the McBrooms might be in financial trouble earlier in the year, was the first to provide property records regarding their foreclosure.
In July 2021, a document indicating that their home was in danger was leaked
A Notice of default was issued by a debt collection agency and served on McBroom's residence May 21, 2021. They had 90 days to repay the $8.7m they owed their lender. On August 30, the McBrooms received a Notice to Trustee's Sale that indicated their property would go up for auction for $9.3million.
After Ace Hat Collection's May 2020 approval for a $108,332 federal Loan from the Paycheck Protection Program, the notice of the debt collection company leaked online in July. ProPublica's database shows that Ace Hat Collection was among the beneficiaries of the program. According to the ProPublica database, Ace Hat Collection used $20,000 from the loan to pay off its mortgage interest in 2020.
Both Catherine and Austin denied rumors of their expulsion.
Austin posted the following Instagram message on July 8, 2021: "Ain’t nobody getting evicted. ain’t nobody moving." This was the day after the Notice of Default went online. Stop believing everything that the haters are saying on the internet!
Catherine shared on Snapchat, July 19, that she considered the chatter surrounding her house's foreclosure a blessing.
She wrote, "All the untrue stories and rumors have been blessings in disguise." They made me realize how blessed I am, and helped me get closer to God. I feel so alive!"
McBrooms $10 million mansion was sold to foreclosure in 2021
According to an online auction listing, the property was sold at a starting price of $9.07million on October 19. It was then returned to the beneficiary following the auction. Static Jon, a YouTuber, captured video footage of the auction.
According to California's nonjudicial foreclosure law, there were no bids in the auction. Bidders must pay cash immediately.
Jon asked an auctioneer if it was normal for McBroom homes to be on the market.
"9 Million?" She replied. "No, this is not normal for these guys."
McBrooms also involved in numerous other lawsuits
YouTube/The Ace Family channel posted and then quickly removed a video. YouTube/The Ace Family
The foreclosure of their mega-mansion is only the latest scandal to plague the ACE Family.
LiveXLive sued Austin's company Simply Greatest Productions. Insider was told by a lawyer representing LiveXLive that McBroom's boxing show was built on a "stack full of lies." LiveXLive demanded $100 million as part of their lawsuit for alleged failures to fulfill contracts.
TBL Cosmetics, Inc sued Catherine. This is a manufacturing company that produced and distributed 1212 Gateway. Insider saw the civil complaint against McBroom, which alleged that McBroom orchestrated a "coup," of the skincare brand to stop TBL Cosmetics profiting from 1212 Gateway.
Ace Hat Collection also petitioned two construction companies in Los Angeles County Superior Courts to release mechanic's lien. These liens are usually filed by contractors who have never received payment for the project they completed or for supplies provided. The first petition was denied by the judge. The second is awaiting judgement.
Insider was informed by Ace Hat Collection's lawyer that he had filed a notice d'appel on behalf of the company in support of its civil petition against a heavy machine company, which holds a mechanical lien on Ace Hat Collection, Inc.
The McBrooms have yet to address foreclosure discussions publicly. Since June 20, Austin hasn’t posted to Instagram, while Catherine posted a Poshmark ad. She sells used clothes on Poshmark.
Insider has the original article.
