Ed McMahon Facing Home Foreclosure

(AP)  For years, Ed McMahon promised wealth, comfort and happiness as a pitchman for the American Family Publishers' sweepstakes. Now, he could use some of that cash himself.

The former sidekick to Johnny Carson on the "Tonight" show is in danger of losing his multimillion-dollar Beverly Hills home to foreclosure. Documents show that McMahon is nearly $644,000 behind in payments on a $4.8 million mortgage loan he got in 2005. Countrywide Home Loans Inc. filed the notice of default on Feb. 28, with the amount owed to "increase until your account becomes current," according to documents obtained by Celebtv.com.

As of Wednesday afternoon, McMahon's Mediterranean-styled house was still in the process of foreclosure; the bank hasn't taken it over yet and no trustee sale date has been set. McMahon and his wife, Pamela, are having "very fruitful discussions" with the lender to resolve the problem, spokesman Howard Bragman said Wednesday.

Bragman declined to give specifics about McMahon's finances, but said the 85-year-old television personality has been unable to work since he broke his neck 18 months ago. He did say that the current problems are unrelated to a toxic mold that spread through the structure, sickened McMahon and his wife, and led to the death of their dog in 2001. He received a $7.2 million settlement from that case.

The former "Star Search" host has found himself in the same situation so many homeowners have recently, said Daren Blomquist, spokesman for RealtyTrac, which follows foreclosure filings. He found that McMahon has taken out several loans on the house over the past few years, including a $300,000 home equity line of credit the same day he took out the $4.8 million loan in November 2005.

"You're using your house as a piggy bank because there's so much equity - at least back in 2005 - so you're able to take money out of it and use that for just spending in any way you see fit," Blomquist said. "But the problem with that in the long term is that with the housing in this market, you don't see it continue to go up in property value. Now, you see it going down in many areas ... and you still have to pay your mortgage payments. You don't have the option to take more cash out of the house."

Bragman said there was "a certain irony" in the fact that McMahon has always tried to connect with average Americans, and now he's experiencing some of their same problems.

"The part that really is touching, as Ed has said to me, is that, `I know I'm not alone in this. There's a lot of working-class Americans who are getting caught up in this situation, and my heart goes out to them.'"

He first bought the six-bedroom, five-bathroom, 7,000-square-foot house in January 1990; the purchase price wasn't mentioned in court documents. It's been on the market for the past two years and is listed at $6.25 million. The mansion is in a gated hilltop section off Mulholland Drive called The Summit, the same exclusive area where Britney Spears lives.

Photos of the estate, posted on the Hilton & Hyland realty Web site, show an imposing stone facade with a large driveway, a sweeping staircase and a large pool in the back. The listing boasts, "The master suite, with his and hers baths and closets, overlooks the yard and sweeping canyon."

McMahon is the latest celebrity to be hit by Southern California's foreclosure crisis. In May, former baseball star and "Juiced" author Jose Canseco had his property foreclosed in the San Fernando Valley. Canseco said then that he walked away from his $2.5 million, 7,300-square-foot home in suburban Encino because it didn't make sense to continue making payments.

Bragman said McMahon and his wife still live in their home and plan to remain there as long as possible: "He's a pretty proud man. I don't see him calling people and saying, 'Send money.' We're not going to do a telethon for Ed."

[variant_530]

Perhaps Mr. McMahon has chosen to let the house go into forclosure while the settlement for his mold problem is safley tucked away in an interest bearing account. Defaulting on the remainder of his mortgage with 7.2 million in the bank even including the seconds provides an interesting option for a risk taker.

[credibility2]

Isn''t it ironic that McMahon is been trashed for being in this position, yet sport''s figure Holyfield is also in foreclosure and no one is blasting him for presumably living beyond his means, or being foolish with his money and/or investments, or for not getting a modest home, or for not paying off his mortgage earlier, or, blah, blah, blah.....

[stupidrules3]

An 85 year old man should not have a mortgage payment at all. Surely he made enough money earlier in life to pay off a house. Maybe it''s like the story of the ants and the grasshopper. The ants worked hard to store food for the winter while the grasshopper goofed off and did nothing. When winter came, the ants did well while the grasshopper starved. It sucks to be you Ed.

[jimbeamalki]

As I used to hear Johnny say many a night, "Tough Crowd!!!"

[keithle1]

If he''d bought a modest house in his "Tonight Show" days, he would have paid it off in no time & have had no mortgage to worry about. Just property tax. How many bedrooms can you sleep in at the same time?

Maybe his wife pushed him to overextend himself. Keep up with the joneses.

I miss "The Tonight Show." I can''t watch Letterman anymore & Leno is the EXACT same thing EVERY night.

Johnny Carson rules. Ed is ok too. He is what he is.

Probably going to see a lot of rappers declaring bankruptcy & facing foreclosure. You know they''re burning up the cash like nobody''s business.

[wilmojo1]

Why should I or anyone else feel sorry for Mr. McMahon? He should have saved some of his millions for the bad times that were sure to come. Unless he thought that he wouldn''t live long enough to become broke. Shi_ happens to the best of people just like it does to the bad among us.I say to mr. McMahon suck it up and live within your means like the rest of us have been doing most of our [e-mail].

[wardoglrs]

The bigger they are the harder they fall. You people really need to read what Dr Paul says about the economy he truly is a man of knowlege and integraty.
He never even voted for himself a congressional pay raise ever. He doesnt even have goverment health care.
What the hell is wrong with people that support wellfair?. Stealing from one group to pay for another thats what youll get with Obama/McCain/Clinton. more wellfair more taxes more goverment invasion more BS. No Change same Bull differant day 4 more years of hell

[floydite]

To quote the P.U.M.A. Political Action Committee:

"We will not vote for Barack Obama in November. We will stay home, vote a third party, and in the swing states we will vote for John McCain."

Well, that is certainly mature. Wise and sagacious would be other terms that could describe this stance. The last politician to follow this line of reasoning was Adolf HITLER, during the last days of WWII. When confronted with certain defeat, he chose to fight on, kill millions of his own people, and then, in the last days, order the complete destruction of the entire German industrial infrastructure, because, as he saw it, the "Germans let him down." It was called "The Nero Order," and thank God that Albert Speer did not carry it out.

PATHETIC - if Hillary can''t have it, no one can!

[mossyred]

P.S. to my last post:

What appened to Ed''s $7.2M settlement from 1971? Again, clearly this is not average-joe type situation.

[mossyred]

SkyFive quotwe: "Like millions of other people in America Ed bought more house than he could afford because it was made available for him. The payment on 4.8M is $48,000. a month. Wow!"

He''s owned the house since 1990 (18 years.) The 4.8M mortgage and $300,000 home equity loan was made in 2005. What happened to the built-up equity for those 18 years? This is quite un-like the ''average Joe'' problem.