Kim Zolciak Biermann's House Is in Foreclosure: An Expert Breaks Down What That Means and How She Can Save It

The Real Housewives of Atlanta alum and her husband, Kroy Biermann, defaulted on a $1.65 million loan on their Georgia mansion

Kim Zolciak Biermann's home is in foreclosure — but there's a path to saving the property, according to a real estate expert.

The Real Housewives of Atlanta alum, 44, and her husband, former NFL player Kroy Biermann, 37, defaulted on a $1.65 million loan they took out on their Alpharetta, Ga. mansion, according to a notice shared last week by Fulton County. Truist Bank plans to auction off the property on March 7 in front of the Fulton County Courthouse.

However, there is a way for the couple to prevent the auction from taking place and keep their home.

"Typically owners have until the business day before [the auction] to redeem the default amount and halt the foreclosure," Brock Harris of the VOYAGE Real Estate team at Compass tells PEOPLE.

Kim Zolciak-Biermann. BRAVO

In fact, another Bravo star, Real Housewives of New Jersey's Teresa Giudice, did just that when her Montville Township home was in foreclosure.

Another option for homeowners facing foreclosure who cannot pay what is owed is to declare bankruptcy. Harris notes this is "the most common strategy," but it's incredibly complicated.

As for how a home ends up in foreclosure, Harris explains, "Ninety-nine percent of the time homes get foreclosed when mortgage payments are missed. But you can also get foreclosed on for not paying things like insurance or more commonly, property taxes."

The location of Kim and Kroy's home also made it comparatively easy to begin the foreclosure process.

"Georgia is a 'non-judicial foreclosure' state, meaning the lender can foreclose on an owner's home without filing suit or appearing in court before a judge," Harris explains. "A bank can serve a 'notice of default' if an owner is just 30 days late on payment. They usually initiate foreclosure after 90 days, which results in a 30 day notice of auction in Georgia." At that point, a public notice of foreclosure would be issued, he says.

Kim Zolciak-Biermann/Instagram

The couple had taken out a $1.65 million loan on the home in 2012 shortly after purchasing it, according to the notice. Harris says this is also incredibly common.

"It is very common to see owners taking out a loan on a mortgage the following year. Homeowners rarely keep their purchase loan for long. They almost always do a cash-out refinance when they can, or, now that rates are higher, take a second loan out on the property," he explains.

Since the notice of foreclosure was filed, Kim has maintained it's a "misunderstanding," a source tells PEOPLE.

"She is telling everyone this is a misunderstanding and is being sorted out," the source said, adding, "She's not moving."

The Bravo star's oldest daughters seem to be on the same page.

Ariana Biermann/Instagram

"Don't believe everything you hear," Ariana, 21, told TMZ on Wednesday, while arriving at LAX, along with her 25-year-old older sister.

She added, "We'll see what happens March 7," the date the home is due to be auctioned off.

The sisters told the outlet that they had stayed at the Alpharetta estate the night before, and that all the furniture was still there.

"Everything is still there, we all live there," Ariana said.

Kim previously shot down rumors of a foreclosure in November 2022 with a video posted on her Instagram Story captured by @BravoHousewives.

"Ok you guys, my house has not sold for $257,000," she started in the clip, panning around the interior of her home. "If you guys think I would let my home that we've put millions and millions of dollars into go for $257,000, you're an idiot, okay? For real."

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Shortly after the couple bought the seven-bedroom home in 2012, Zolciak-Biermann gave fans a tour of the property, below, on their Bravo reality series Don't Be Tardy. She previously left RHOA after starring in the first five seasons.

"I absolutely love our new home," Zolciak-Biermann raved before showing off their lavish dining room and adding: "Kroy and I are the king and queen of this f---ing house, so this is perfect for us."

The mansion includes a movie theater-style Hollywood Room, a resort-style pool where Kim keeps the temperature at 98 degrees Fahrenheit, and an outdoor basketball sports court.