Ed McMahon Facing Home Foreclosure

Former "Star Search" Host $644,000 Behind In Payments On $4.8M Mortgage

(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."

[luckygirl042]

Uh...he got a 7.2 MILLION dollar settlement in 2001, and now, 7 years later, can''t pay for his house?? What''s up with that? He should take some money management classes.

[honestabe8]

Maybe he should look for the envelope with his name on it. He might be a millionaire...

[pepperwood2]

Our heart goes out to them. Po Po Ed & Po Po Hillary.
Banking problems are being worked on by our New Congress Mr. Ed. Don''t worry - Tide is turning, Tide is turning! In the meantime you and Arnold get rid of those gas guzzling big carbon footprint Hummers & do what the rest of us have to do. Do without any help from Congress.

[dukuss]

My heart just breaks when I read of a Beverly Hills 7000 sq ft. home at $4.8m. ''80'' bedrooms and ''25'' bathrooms for him and his wife........

Get real fool.......move out, lower your price like the rest of us. You troll.

[bwright923]

"Its not a loan, its a line of credit! You are just taking the equity you have earned out of your home!" Ok, is it money from a bank? Are you going to have to pay it back at some point? If you don''t will they come after your assets to get their money back? Then it is a LOAN and if you just get one so you can have some jet ski''s and throw a nice party for your neighbors on Muholland Drive, you are going to be in the poor house! At 85 you would think that he would be thinking about having some money to take care of himself in his old age.

[heero2020]

I guess he got money management advice from MC Hammer

[ksjeff-2009]

7.2 Million in 2001 would have PAID the entire mortgage. I don''t feel sorry for the old fool. Let him learn from his mistakes like everyone else in California. Tough sh**.

[mjvw2]

Poor Ed. I think the taxpayers should bail him out like the rest of the losers. Yeah right!

[thewarning2]

DAMNIT Ed!!!

[mrpisces-2009]

I have no pity for this guy. American Publishers were sued for misleading so many people into buying things as part of that fake lottery. He should move out of his house live within his means. Maybe he should do what all average seniors do when they need a job at such an old age. Work as a greeter at Walmart!!!

[docpeter-2009]

I''m sorry for you ed ...NOT.

I lost my home over a year ago, and it wasn''t due to foreclosure, it was due to occupational downsizing.

My home was worth a mere $100,000, considerably less than he owes.

I refuse to really feel sorry for the trials and tribulationws of the wealthy.

[rational_1]

I guess Johnny didn''t pay that much!

There''s no excuse for a guy his age to be in this situation after making as much money as I''m sure he made all these years.

Heeeeeeeeere''s bankruptcy.

[nothappyatall]

They give an 85 year old guy an 8 million dollar mortgage??? He buys the house in 1990 then gets over $7.2 million in a settlement in 2001 and he cant pay his bills??

He needs a SEVEN THOUSAND sq foot McMansion with SIX bedrooms and FIVE baths for himslef and his wife???

[fstop100]

you think he would have learned how to manage money, the rest of us have to.

[credibility2]

All this proves is that the housing mess affects everyone and considering he got his mortgage from Countrywide, one shouldn''t be that surprised. It''s disgusting the way some of the posters are passing judgment on this terrible situation. We don''t really know all of the financial aspects of this. It''s ironic that when a rapper or some other music industry fool, or sports figure has money problems, I think many of the posters here try to feel compassion for the downfall. But because it''s an older person like McMahon, cruel judgment is being passed. I hope none of these morons are experiencing any unfortunate situations in their own paltry little insignificant and meaningless lives.

[ioweign]

Ed should just give back the house - they can move in with his parents...

[kcmary1]

7,000 square feet that had Toxic Mold bad enough to kill the dog? Multi-million dollar settlement? An 85 year old man and his wife who needs a mansion? I''m sorry Ed, buy yourself a nice little $300,000 bungalow and let yourself live easy and well.

I don''t symapthize with over indulgence.

[thgdriver]

Nobama has a new Democratic social program that he wants to implement as soon as he is president. People like poor ED who can''t afford their mortgage payments will get the help they need to keep that roof (that they could not afford) over their heads. All he needs to do is hang on till the tax and spend Dimwitocrats get into office, all his troubles will be over.

[thgdriver]

I hope none of these morons are experiencing any unfortunate situations in their own paltry little insignificant and meaningless lives.

Posted by Credibility2

Listen to me credibility2, It''s called living within your means, it''s called saving for a rainy day. Far too many folks today, wanting to impress their friend and neighbors, went in "way" over their heads on a home. Then they maxed out their credit cards to furnish it. Add two luxury cars for the garage and live pay check to pay check.

You don''t have to worry credibility, once Nobama is in office the American taxpayer will be bailing all the folks like you out of the mess you have yourself in.

[sengelly]

The first thing that comes to my mind is what has Ed McMahon done with all the money he has earned over the course of his career? Mr.McMahon has had more money and opportunities in his life than the average person. I can not feel sorry for a person of means who has not managed his finances properly. Yet I can feel for the average American family that has always and continues to work hard everyday and has to pay their mortgage or rent payment and then choose between food and health care. Most Americans have not had the opportunities Mr. McMahon has had and would give anything to experience the life he has led. Fame, fourtune, money, luxury homes and cars, fancy vacations. Mr. McMahon has had it all. No I cannot feel sorry for him.

[carpriddler]

You are correct magnificent one! Yes, Kemo Sabe ! Ten Million Dollars!

[carpriddler]

Ed, like most men of money when they get old, hooked up with a young woman that took him to the cleaners. Before her, his other wife took him to the cleaners.
Big bucks, big taxes, and the market went south. Hang in there Ed.

[thgdriver]

Posted by Sengelly

I don''t think Ed has asked anybody for a dime. He probably will be fine. I was brought in a family that was taught early on to expect the unexpected.

All money management advisor''s for decades, have always tauted the "3 month in mortgage payments saved in the bank rule" for that Rainy day (so to speak). If you find you can''t save that, you are already living beyond your means.

[thgdriver]

Well, isn''''t that to bad he gets to be part of the "American Dream" like thousands, or perhaps millions, who lost or about to loose their home.


Posted by nikosk1

According to the story, ED has not asked anybody for a dime. On the other hand, millions of Americans have their hand out and are expecting the American Taxpayer to pay their mortgage so they can live in homes they could ill afford in the first place. Nobama has a social plan for all of you, hang on.

[honestabe8]

"Many men owe their success to their first wife and their second wife to their success" - Jim Backus

[erasmus81]

"There''''s no excuse for a guy his age to be in this situation after making as much money as I''''m sure he made all these years."
Posted by rational_1 at 09:16 AM : Jun 05, 2008

When you are in that industry and start getting older, you would think they would start downsizing, wouldn''t you?

[Scooter68]

Someone is just plain foolish here.
Home loan (orgininal) 4.8 Million
Mold Settlement 7.2 (Less 50% for lawyer?) 3.6

And none of that 3.6 was used to pay down the home loan or saved to use now?

Sorry Ed - Living large without the large paycheck to cover it has it''s cost and payback time has come.

No ill will toward the man but sheesh - an adult has to act resposibly once in a while.

[zorar-2009]

Why is this news?

[lawyertom1]

Now we know why he faked the harm from the mold in his house and was less than forthcoming about his poor pet dog. He was broke, and desperately willing to do anything for money.

[sistatee-2009]

Karnak couldn''t see this coming?

[boston1954]

My heart bleeds. A lot of hard working people are losing their houses because of a rotten economy and he''s loaded. Get an apartment!

[haoli25]

Hang in there Ed, YOU MAY ALREADY BE A WINNER!

[gheemaster38]

Nobama has a social plan for all of you, hang on.

Posted by carpriddler

Funniest line of the day. True, and funny.. Or, maybe he will do what he does best and run away.

Either a social plan or a GOOOOOOD SERMON(Speach?)

[avigil2]

Mr. Ed, did you really need a 6 bedroom, 5 bath, 7000 square foot house to begin with? Is your entire family living with you?

[denn034]

Quit representing Publisher''s Clearing House and enter their contests McMahon! I''m sure you''d be a shoe-in for winning, guy.

[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.

[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.

[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!

[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

[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].

[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.

[jimbeamalki]

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

[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.

[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.....

[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.