This just sent in by a reader: Ed McMahon's home faces foreclosure. Details:
The foreclosure problems sweeping the United States apparently have ensnared Ed McMahon, who is best known as Johnny Carson's sidekick on "The Tonight Show."
The Wall Street Journal reported Tuesday that McMahon was $644,000 in arrears on a $4.8 million loan for a home in Beverly Hills, California.
The newspaper reported that ReconTrust, a division of Countrywide Financial, filed a notice of default related to a loan for McMahon's house in Los Angeles County Recorder's Court on Feb. 28. It said his house has been on the market for about two years.
How did this happen? Hasn't McMahon made something like a bazillion, ga-zillion dollars during his career? What'd he do, blow it all?
You know those American Family Publishing sweepstakes prizes? Maybe they were paying those $10,000,000 prizes out of his wallet.
Posted by: Anonymous | June 04, 2008 at 12:16 PM
Of all people to face foreclosure, I would never guess that it would be him. I guess the best fall sometimes right? Maybe you could email a link to him about the site in trying to save money.
Posted by: Luke @ Money & Fitnes Blog | June 04, 2008 at 12:35 PM
I guess it just goes to show that you can always screw up or outspend your income, no matter how high it is.
Posted by: mysticaltyger | June 04, 2008 at 12:47 PM
Another article said:
"McMahon, 85, has been unable to work as a pitchman for various products since he broke his neck 18 months ago, said his spokesman, Howard Bragman."
Wikipedia mentions that too, but it also says that he had $200M in assets in the 90's (mostly in real estate).
http://en.wikipedia.org/wiki/Ed_mcmahon
So it might be a combination of being over exposed to real estate in CA and the breaking his neck not giving him enough revenue to support his lifestyle.
Jim
Posted by: Jim | June 04, 2008 at 02:54 PM
I saw him in L.A. about a year ago, and he did indeed have a neck brace on. At his age, I can't imagine that he should be working to pay of something as basic as his mortgage. It sounds like he just wasn't watching his money. Most celebs put their faith in a business management firm to manage their money. However, I know that such firms tend to prefer to keep the mortgage on the books at a good interest rate, and invest the funds that *could* be used to pay it off.
Per the LA Times, his house has been on the market for a while, but it has a couple of big problems. First off, it's in the same gated community as Britney Spears home. Can you imagine the paparazzi?
Second, it's plagued with mold for which "McMahon won a $7.2-million insurance settlement after claiming that mold in his house killed his dog Muffin and sickened him and his wife."
You'd figure he wouldn't have any liabilities against the property with that.
The LA Times goes on to say "McMahon took out two loans on the property totaling $4.5 million and later borrowed an additional $300,000 against the house, according to ForeclosureRadar."
Honestly, it's just kind of sad.
http://www.latimes.com/la-fi-mcmahon4-2008jun04,0,4963138.story
Posted by: MetaMommy | June 05, 2008 at 07:20 PM