Kim Zolciak Biermann's Home Will Not Be Sold at Auction After Couple Took 'Action to Clear This Up': Source

Kim Zolciak Biermann's Georgia mansion is off the auction block, a source tells PEOPLE.

The Alpharetta estate of the Real Housewives of Atlanta alum, 44, and her husband, former NFL player Kroy Biermann, 37, was placed in foreclosure last week, according to a notice shared by Fulton County that stated the couple had defaulted on $1.65 million loan they took out on the property. Truist Bank planned to auction off the property on March 7 in front of the Fulton County Courthouse.

Friday, a source close to the Bravo star confirmed to PEOPLE that the issue has been resolved, stating, "The couple has taken the action to clear this up."

The law office of Brock & Scott, PLLC confirmed to Entertainment Tonight that the auction was canceled on Feb. 22, but could not provide any additional information about the reason for the cancellation. Brock & Scott did not immediately respond to PEOPLE's requests for comment.

RELATED: Kim Zolciak Biermann's Daughters Deny 'Crazy' News Their Georgia Mansion Is in Foreclosure

BRAVO Kim Zolciak-Biermann

Kim has insisted since news of the foreclosure notice broke that the situation was a "misunderstanding" with the bank, a source previously told PEOPLE.

"She is telling everyone this is a misunderstanding and is being sorted out," the source said, adding, "She's not moving."

Her two adult daughters echoed their mom's sentiment on Wednesday.

"Everything is still there, we all live there," Ariana, 21, told TMZ, while arriving at LAX, along with her 25-year-old older sister, Brielle. The pair confirmed they had stayed at the estate the night before.

Ariana added, "We'll see what happens March 7," the date the home was due to be auctioned off. "Stay tuned."

Ariana Biermann/Instagram

While neither the couple nor the firm have shared details about what caused the home to go into foreclosure, a real estate expert shared the most common reasons for home foreclosures with PEOPLE.

"Ninety-nine percent of the time homes get foreclosed when mortgage payments are missed. But you can also get foreclosed on for not paying things like insurance or more commonly, property taxes," explains Brock Harris of the VOYAGE Real Estate team at Compass.

He adds there is a straightforward way to avoid a foreclosure in that scenario: to pay any amount owed. "Typically owners have until the business day before [the auction] to redeem the default amount and halt the foreclosure," Harris says.

Kim previously denied reports that the property was in foreclosure last fall, with a video posted on her Instagram Story captured by @BravoHousewives in November 2022.

"Ok you guys, my house has not sold for $257,000," she started in the clip, panning around the interior of her home. "If you guys think I would let my home that we've put millions and millions of dollars into go for $257,000, you're an idiot, okay? For real."

Shortly after the couple bought the seven-bedroom home in 2012, Kim gave fans a tour of the property, above, on their Bravo reality series Don't Be Tardy. She previously left RHOA after starring in the first five seasons.

"I absolutely love our new home," she raved before showing off their lavish dining room and adding: "Kroy and I are the king and queen of this f---ing house, so this is perfect for us."

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Kim tied the knot with Kroy, 37, in 2011, and they raised her daughters Brielle and Ariana in the home. After the wedding, he became the girls' adoptive father and they took his last name.

They also welcomed Kroy "KJ" Jagger Jr., 11, Kash Kade, 10, and twins Kaia Rose and Kane Ren, 9, while living there.