The website reported Saturday Iverson's mansion was purchased in 2010 for $4.5 million but quickly fell into foreclosure and will be sold at auction Dec. 4 along with the contents.
TMZ said Iverson could head off the sale if he comes up with the needed cash in the next few days.
Iverson could not be reached for comment. TMZ said the beleaguered ex-star allegedly owes a six-figure sum to a jeweler and has been doing battle with his estranged wife's divorce lawyers.
Iverson, 37, entered the NBA in 1996 with Philadelphia, where he played until moving on to Denver in 2006. He later played for Detroit and Memphis before returning to Philadelphia in 2009. He last played for a team in Turkey in 2010-11.
He was the NBA's Rookie of the Year in 1997 and Most Valuable Player in 2001, as well as an 11-time all-star.