American Idol’s Fantasia Might Lose House

Fantasia Barrino of American Idol might be ready to lose her $1.3 million house in North Carolina, if the foreclosure rumors turn out to be more than a “misunderstanding.” The Idol winner has been accused of defaulting on a $58,000 loan from a company called Broward Energy Management, which supposedly loaned Fantasia money to pay IRS back taxes.

Laurence Goldman, who represents Broward Energy Management, asserts that Barrino didn’t respond to the complaint, and the judge, by default, ruled in favor of the plaintiff. A relative of Fantasia’s spoke to the NY Post, claiming that “the singer’s former lawyer is responsible for the mess because he never showed up in court to challenge the judgement against her.”

Court papers reveal that the home, which measures a whopping 6,500 square feet, is going to hit the auction block on January 12th. Was it simply a misunderstanding, or the credit crunch at work? We’ll see!