Elon Musk, who once vowed not to own a home, is now in the process of foreclosure on the $7 million home where the filmmaker lived as a child

The tech billionaire and Tesla Inc. Executive Director Elon MuskHe is now in the process of foreclosure on a Los Angeles home he once helped a filmmaker buy. The house has sentimental value as the childhood home of the filmmaker's uncle, the late actor Gene Wilder.

What happenedIn 2020, Musk agreed to sell one of his Los Angeles homes to the filmmaker Jordan Walker-Pearlman and his wife, Elizabeth Hunterfor $7 million. The house was Walker-Pearlman's childhood home, previously owned by her uncle, the late actor Wilder. Musk also provided the bulk of the funding for the purchase, reported Tuesday's Wall Street Journal.

Four years later, however, an entity linked to Musk has started foreclosure proceedings, claiming the couple has defaulted on their $6.7 million loan. The lender can force the sale of the property 90 days after filing. Despite this, the couple has put the home up for sale for $12.95 million. Drew Meyers from Westside Real Estate Agency.

“There's no tragedy here,” Walker-Pearlman said. “Elon gave us a magical opportunity. I have no complaints.”

Walker-Pearlman has said the couple is cooperating with Musk and that the billionaire is not being “contentious or petty.” She also mentioned that the prolonged strikes by writers and actors in Los Angeles last year played a role in the couple’s late payments.

Walker-Pearlman said Musk's representatives assured her they have no plans to proceed with a forced sale, according to the report. “She no longer wanted to owe Elon morally,” she said. “We already owe him a spiritual debt.”

Tesla did not immediately respond to Gasoline poweredRequest for comments from.

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Why is it important?:This foreclosure comes amid a series of high-profile real estate moves by Musk. In 2020, Musk made headlines by announcing that he would sell all of his possessions, including his homes, and vowed to “not own any houses.” He followed through on his promise by selling seven of his properties for nearly $130 million. However, in May, it was reported that Musk had secretly purchased a mansion shortly after his public declaration.

In October, Musk considered buying a house to provide stability for his family, but found the options too expensive. He then planned to build a unique home in Austin, Texas, described as “something that fell from space.”

Additionally, Musk's new residence was noted to be in the seventh most expensive real estate market in the US, and there was speculation about him possibly living in a manufactured home due to its affordability compared to traditional homes.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote