Editor's Note: A subsequent story on Dec. 12, 2012, reported that the foreclosure auction did not occur as scheduled.
Pianist Lorie Line, known for her grand holiday concerts, is now facing foreclosure on the sprawling Mediterranean-style house that she and her husband, Tim, built on Lake Minnetonka.
Documents filed with Hennepin County say the couple owe more than $2 million on the glitzy 9,100-square-foot house, which was mortgaged for $2 million in 2005 but is now headed toward the sheriff's sale.
Tim Line says that won't happen.
"We're leaning into this and are working with our lender," he said. "We'll have the money in the fourth quarter to avert the sheriff's sale ... we're restructuring our business and our lifestyle within this new economy."
The notice was filed in the midst of preparations for Lorie Line's popular holiday tour, which kicks off Thursday. Tim Line said that the economy has taken its toll on the family finances and that the recession has been tough on cash flow.
"There aren't a lot of extra entertainment dollars out there," he said. "Our business has changed dramatically in the last four years."
The action comes even as the housing market shows signs of improvement, including recent declines in the foreclosure rate.
The Lines built the custom home in Orono in 1996, with Lorie collaborating on the distinctive circular design that made the home a recognizable landmark to boaters.
Last month, the couple put the house on the market for $3.99 million; its assessed value is just under $2.9 million, and property taxes alone are nearly $37,000.
Real estate agent Patty Yorks of Coldwell Banker Burnet, who listed the property, said she was surprised by news of the Lines' mortgage woes. "I feel sad for them," she said.
The four-bedroom house includes a columned mini-stage for Line's concert grand piano, a 1,000-bottle wine cellar, an outdoor kitchen and a third-floor cupola that the couple use for entertaining.
"It's what we've invested our whole life in," Tim Line said.
Line's Immanuel Holiday Concert tour starts Nov. 15 in Indianapolis and runs through Dec. 23, including three shows at the Historic State Theater in Minneapolis.
In an interview with the Star Tribune earlier this month, Line said she and Tim were looking for a smaller home now that their two children are grown. "It's a good time to sell. I see myself living in a simpler way," she said.
Staff writers Lynn Underwood and Kim Palmer contributed to this report.