The tech billionaire and Tesla Inc. CEO Elon Musk, is now foreclosing on a Los Angeles home he once helped a filmmaker purchase. The house holds sentimental value as the childhood home of the filmmaker’s uncle, the late actor Gene Wilder.

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

However, four years later, an entity linked to Musk has initiated the foreclosure process, citing that the couple has fallen 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 with Drew Meyers of Westside Estate Agency.

"There's no tragedy here," Walker-Pearlman said. "Elon gave us a magical opportunity. I have no complaints."

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Walker-Pearlman has stated that the couple is cooperating with Musk and that the billionaire isn’t being “adversarial or mean.” He also mentioned that the prolonged writers’ and actors’ strikes in Los Angeles last year played a role in the couple falling behind on the payments.

Walker-Pearlman stated that Musk’s representatives have assured him they have no plans to proceed with a forced sale, according to the report. "She did not want to continue morally owing Elon 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 Matters: This foreclosure comes amid a series of Musk’s high-profile real estate decisions. In 2020, Musk made headlines by announcing he would sell all his possessions, including his homes, vowing to “own no house.” He followed through 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.