The tech billionaire and Tesla Inc. Managing Director Elon Muskis now foreclosing on a Los Angeles home he once helped a filmmaker buy. The house has sentimental value as it was the childhood home of the filmmaker’s uncle, the late actor Gene Wilder.

What happened: In 2020, Musk agreed to sell one of his Los Angeles homes to the filmmaker Jordan Walker Pearlman and his wife, Elisabeth Jaegerfor $7 million. The house was Walker-Pearlman’s childhood home, which previously belonged to his uncle, the late actor Wilder. Musk also provided the bulk of the funds for the purchase, the Wall Street Journal reported Tuesday.

Four years later, however, an entity linked to Musk has initiated foreclosure proceedings, arguing that the couple is behind on their $6.7 million loan. The lender can force a sale of the property 90 days after the filing. Despite this, the couple has listed the house for $12.95 million. Drew Meyers by Westside Estate Agency.

“This is not a tragedy,” Walker-Pearlman said. “Elon gave us a magical opportunity. I have no complaints.”

Walker-Pearlman has stated that the couple is working with Musk and that the billionaire is neither “hostile nor mean.” He also mentioned that the lengthy strikes by screenwriters and actors in Los Angeles last year played a role in the couple falling behind on payments.

Walker-Pearlman said Musk’s representatives assured him they had no plans to conduct a forced sale, the report said. “She didn’t want to owe Elon anything morally anymore,” he said. “We already owe him such a spiritual debt.”

Tesla did not immediately respond to Benzinga’s request for comment.

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Why it is important: This foreclosure comes amid a series of high-profile real estate decisions by Musk. In 2020, Musk made headlines when he announced he would sell all of his possessions, including his homes, and vowed to “not own a home.” He followed through on his act 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 home 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, it was reported that Musk’s new residence is located in the seventh most expensive real estate market in the US and there was speculation that he would live in a manufactured home as they are more affordable compared to traditional homes.

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This story was created with Benzinga Neuro and edited by Kaustubh Bagalkote