Teresa Giudice and husband Luis Ruelas ‘on the brink’ as $3.7M New Jersey mansion faces foreclosure amid explosive $3M tax debt and secret $1M loan—Clarence Manor may be gone for good - suong

When people think of Teresa Giudice—the longtime star of The Real Housewives of New Jersey—they often picture a woman who refuses to back down. A woman who walked out of prison with her head held high, rebuilt her life from the ashes, and found love again with businessman Luis Ruelas. But behind the ornate gates of Clarence Manor—the $3.7 million Montville estate spanning over 7,700 square feet, once hailed as “the new beginning” for Teresa—a far darker reality is now unfolding.

According to newly revealed court documents, Teresa and Luis are facing a combined tax debt of over $3 million. Teresa herself reportedly owes more than $303,000, while Luis is saddled with a staggering $2.6 million in his name. The situation took an even more serious turn when it was discovered that Luis had quietly taken out a $1 million loan against the mansion last year, without full financial disclosure. On top of that, a separate $163,000 mortgage was filed in late 2024, raising concerns that Clarence Manor may no longer be a dream home—but rather a final financial pawn.

Clarence Manor is far from an ordinary home. With seven bedrooms, ten bathrooms, a vintage-style home theater, a boutique walk-in closet that rivals a luxury fashion house, and a heated saltwater pool with a 60-foot underground slide, the property was once proudly described by Teresa as “a dream come true.” Now, that dream appears to be crumbling. Insiders say financial advisors within the family raised red flags as early as late last year, when the flow of tax and mortgage payments began to falter.

Meanwhile, Teresa continues to maintain a polished public image—appearing in designer gowns and posting confident captions on social media. But according to multiple sources, this could be a strategic effort to preserve her public brand and Bravo contracts as financial pressure mounts quietly behind the scenes. Whispers in New Jersey’s elite social circles suggest Clarence Manor may soon be “transferred discreetly” if no major financial turnaround occurs.

In the end, what stings the most for fans and followers is the irony: the opulence that once served as Teresa’s proud shield is now her heaviest burden—dragging both her and Luis into a legal storm that not even reality TV can script its way out of.