One of the tabloids’ favorite go-to stories is always “LeAnn Rimes is going broke because Eddie loves expensive toys and her career is in the toilet.” At one point, LeAnn was very successful. So successful that she had a reported wealth of about $20 million. But I kind of doubt that number, especially since LeAnn has downgraded on a lot of stuff in the past five years, like selling off her Nashville home for a significant loss, and taking weird and low-paying gigs which a “rich” person wouldn’t have to do. So does LeAnn really have money problems? Star Magazine and OK! Magazine say she does. And they backed it up with documentation. Apparently, LeAnn and Eddie borrowed $350,000 from their friends, the Fradins, and they still haven’t paid it back.

LeAnn Rimes & Eddie Cibrian are pinching pennies these days! When the celebrity pair wanted to buy a $3 million Hidden Hills, Calif., mansion, they just didn’t have enough in the bank to cover their new home. “LeAnn and Eddie took out a $2.1 million loan from the bank, but that’s all they were qualified to borrow,” spills the source.

“They scraped together $550,000 in cash, but the remaining down payment was provided by their pals,” which the source says these pals, Dave and Lizzie Fradin, might quickly see was a “recipe for a disaster.”

“If LeAnn and Eddie fail to repay the loan, the Fradins could foreclose on their house!” dishes the source. Documents show LeAnn and Eddie’s pal Dave Fradin as the beneficiary of a trust established so the cash-strapped couple could buy their home.

The celebrity pair didn’t see the harm in borrowing though, especially since LeAnn’s newest album Spitfire might be the savior to pay back their debt, but it turned out to be a bust.

“She was the hottest singer 20 years ago, but LeAnn, 32, didn’t manager her money properly,” says the source. “She burned through her $20 million fortune.”

While the families vacation together and the Fradins’ two sons are friends with Eddie’s boys, Mason, 12, and Jake, 8, they clearly haven’t forgotten about the money. Now, LeAnn’s husband, who is the CFO of his company, Majestic Asset Management, reaffirmed the debt in May 2015.

[From Star Magazine]

OK! Mag clarifies some of the issues – they say the money was borrowed in 2012, which means LeAnn and Eddie have gone three years without paying the money back or even making some payments to their friends. Apparently, the Fradins have also filed paperwork basically saying that LeAnn and Eddie need to pay them back ASAP or they will foreclose on the home. OK! Magazine also says that Eddie and LeAnn are so low on money “they can barely afford groceries!” YIKES. Could it be that I am more fiscally responsible and a better money manager than LeAnn Rimes? Probably.

Photos courtesy of WENN and LeAnn’s Instagram.