"All of Wesley's bank accounts are wiped out. His four kids have nothing to live on," the New York Post quoted a source as saying.
Snipes' attorney is said to be reaching out to a mortgage company that would be willing to refinance the house.
Sources say the loan would have balloon interest payments that Snipes would have to pay in full when he gets out of jail in 2013.
The 'Blade' star is working to land an advance on a movie deal, while his lawyer is trying to pin down the income Snipes makes from film and TV residuals and merchandising.
"As you can imagine, it is true that his family is having financial challenges, mainly due to his current situation," added the source without commenting much on the movie.
