Dorit Kemsley and PK’s $7.5M Mansion Seized After Tax Trouble and Mortgage Default

Dorit Kemsley and her estranged husband, Paul “PK” Kemsley, have officially lost their $7.5 million Encino mansion — a glamorous estate once featured heavily on The Real Housewives of Beverly Hills — after falling into deep financial turmoil. What was once a symbol of reality TV luxury has now become a cautionary tale of high spending and ignored responsibilities.

💥 A Lavish Lifestyle Built on Shaky Ground?

The 8,900-square-foot estate, which boasts six bedrooms, a sprawling backyard, and designer interiors, was purchased in 2019 through a limited liability company (LLC) connected to Dorit. From wine cellars to marble countertops, the home was frequently flaunted on Bravo and on social media, painting a picture-perfect life of wealth and success.

But behind the scenes, things were not as polished.

According to court documents and property records, the couple had fallen months behind on their mortgage payments, accumulating a debt of over $300,000. In late 2024, the property was issued a Notice of Default, initiating a “pre-foreclosure” process. Though they briefly averted disaster by paying off the overdue amount in early 2025, that turned out to be a temporary band-aid.

💸 LLC Suspension: The Final Blow

While the mortgage issue drew headlines, it was the suspension of their LLC by the California Franchise Tax Board that became the fatal misstep. When an LLC is suspended, it loses its legal protections and rights, including the ability to hold or defend property ownership. This technical violation triggered a non-monetary breach of the mortgage agreement — and gave the bank legal grounds to seize the mansion.

Legal experts point out that while the couple may have thought they’d dodged the bullet with the initial repayment, failure to address tax obligations and corporate filings sealed their fate. “It’s not just about owing money. If your LLC is suspended, you basically hand the lender a legal weapon,” said one Los Angeles-based attorney familiar with the case.

🧨 From Red Carpets to Reality

This isn’t the first time the Kemsleys’ finances have made headlines. PK has faced multiple lawsuits over unpaid gambling debts and outstanding loans, while Dorit was the victim of a high-profile home invasion in 2021. Together, their image has long teetered between aspirational and unstable.

In recent months, rumors of marital tension and separation have also surfaced, adding more strain to their already crumbling empire. While neither has issued an official statement regarding the mansion’s foreclosure, sources close to the couple say they are “devastated but not surprised.”

“They were living above their means for years,” one insider claimed. “This was bound to catch up eventually.”

📉 A Public Fall From Grace

Fans of The Real Housewives of Beverly Hills have taken to social media with mixed reactions. Some expressed sympathy, especially considering Dorit’s past trauma, while others saw the mansion’s seizure as a classic case of “too much flash, not enough cash.”

The now-bank-owned property is reportedly set to hit the market in the coming months — a far cry from its heyday as a Bravo backdrop. And for Dorit and PK, what comes next remains uncertain. With ongoing legal and financial complications, the fall of their real estate crown jewel could be just the beginning of a much longer unraveling.

✨ Final Takeaway

At the height of their fame, Dorit and PK Kemsley lived like royalty in Beverly Hills. Now, their dream home stands as a stark reminder that even reality stars can’t escape reality. Designer handbags and camera crews can only cover so much — and when the bills come due, no spotlight is bright enough to make them disappear.