Ed McMahon in forclosure

[saluki9]

I know we spend a lot of time discussing people with high incomes who get into financial trouble, but this one shocked me.

Countrywide is forcing a foreclosure on the house of Ed McMahon. Looks like he's about $600K behind on his payments and they say he also has an equity line out too.

Despite being good friends I guess Johnny never cut him in on the royalties?

TV's Ed McMahon in talks with lender amid foreclosure report - Jun. 4, 2008

 

[REWahoo]

Looks like Ed never won that Publisher's Clearinghouse Sweepstakes he talked about so much...

 

[saluki9]

Looks like Ed never won that Publisher's Clearinghouse Sweepstakes he talked about so much...

I guess if he had known this was coming he would have run off with one of those checks.

Then again, it's got to be hard to forge one of those giant 5 foot wide checks.

 

[FUEGO]

Maybe he was way underwater on the loan and decided to cut his losses? And get to live in a place for free for a year or so? First lien holders can't sue for deficiencies in CA can they?

 

[FinanceDude]

Shouldn't he be FI at 85 years old??

 

[Martha]

According to the WSJ: "Mr. McMahon broke his neck in a fall about 18 months ago and hasn't been able to work, Mr. Bragman said. That health problem, along with the weak housing market and economy, has forced Mr. McMahon into foreclosure proceedings."

85 years old and still needs to work.

 

[REWahoo]

Shouldn't he be FI at 85 years old??

I'm guessing he was FI when he retired but probably drew out more than 4% of his nest egg...

 

[Moemg]

Ed Mc Mahon one of the original Florida land swindlers !

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[retire@40]

According to the article:

"Nationally, one of every 194 U.S. households received a foreclosure filing in the first three months of 2008, according to recent figures from RealtyTrac."

Can this be true?

 

[CyclingInvestor]

First lien holders can't sue for deficiencies in CA can they?

If it is the 'purchase' mortgage, no. If it is a re-finance, yes.

 

[retire@40]

I have no sympathy for multi-millionaires that get themselves in financial trouble.

Most of the time it's because they have lost respect for the value of money.

 

[brewer12345]

According to the article:

"Nationally, one of every 194 U.S. households received a foreclosure filing in the first three months of 2008, according to recent figures from RealtyTrac."

Can this be true?

Why not? If you annualize it, it is something like 2% of loans out there getting some kind of notice. These notices generally start after you are 90 days late on your payments.

 

[Wags]

Ed Mc Mahon one of the original Florida land swindlers !

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In a strange way the poor devil is getting his just desserts.

Maybe now he has an idea of how it feels to lose one's home.

God Bless Us All

 

[OAG]

Still working as he was on a commercial this morning selling the portable upright bathtub. He must have some very large expenses - and I know the house he has costs a tad more than mine but the bank/lender let him get out $600,000 -- no wonder the banks all want a handout from the Government (also know as the US Taxpayer).

 

[Orchidflower]

Isn't this what they mean when they speak of kharma?
And Wesley Snipes is doing Nordic Trac ads on tv with Chuck Norris and Christie Brinkley now. Guess he's working to pay off those back taxes after all.
Now I know what Grandma meant by saying "every dog has his day."

 

[retire@40]

Bo Diddley, David Letterman, Ed McMahon

 

[Disappointed]

How much money did he really lose? He owes quite a bit on this propery ($4.85mm), perhaps a second as well. House listed at $6.25mm but also liste at $5.85mm on a different website, though the listing agent insisted it is still listed at $6.25mm. How much did he pay for it, any equity, does he care? House has been on the market for 2 years, he won an insurance claim for $7mm claiming mold in this house caused him and his wife to get sick, also killed one of his dogs.

I am wondering if he just wanted to get rid of the house or just let it go into foreclosure if no buyer intentionally. With nothing to lose (no equity) he might as well just let it go.

mP

 

[OAG]

So this is just one of the "new business decisions" that seem to make sense in the "new age of finance"? I guess it does, in a way, unethical but WTH, it seems to work well for some.

 

[W2R]

Definitely shocking.

He probably never learned to LBYM at all!! I think we are doing more to grow wealth by starting with LBYM than many of us realize.

 

[cute fuzzy bunny]

See? If he'd just paid off his mortgage years ago, he wouldnt have had any problems when times got tough.

 

[W2R]

See? If he'd just paid off his mortgage years ago, he wouldnt have had any problems when times got tough.

You got it, bunny!

 

[Dawg52]

Here's another one.

Evander Holyfield's mansion under foreclosure

 

[Disappointed]

I think he gets to sell his house to the bank at close to what he would have accepted. So far he owes $4.75mm + over $650,000 in late payments, that puts it at about $5.375MM. If he had it listed at $5.75, all he needs to do is to stay in the house a little longer and he would be getting full price from the bank. How cool is that?

LA Times ran a three part on foreclosure, many default homeowners have zero equity in their houses (100% financing). Talking about creating a bubble.

mP

 

[retire@40]

Bo Diddley, David Letterman, Ed McMahon

Name a late rocker, a late nighter, and a late payer.

 

[samclem]

See? If he'd just paid off his mortgage years ago, he wouldnt have had any problems when times got tough.

Well, he'd still have a broken neck. But, your point is well taken.