Ed McMahon facing foreclosure in Beverly Hills

Jose Canseco losing a house is one thing. But foreclosure for Ed McMahon? True indeed, reports the Los Angeles Times: "Ed McMahon, the longtime sidekick to Johnny Carson on 'The Tonight Show,' is fighting to avoid foreclosure on his multimillion-dollar Beverly Hills estate."

More, from the Times' Peter Hong: "McMahon defaulted on $4.8 million in mortgage loans with a unit of Countrywide Financial Corp., which filed a notice of default in March, according to ForeclosureRadar, a company that sells default data pulled from public records."

From The Wall Street Journal: "Howard Bragman, a spokesman for Mr. McMahon, said late Tuesday that his client is having 'very fruitful discussions' with the lender and hopes to find a resolution. It isn't clear whether that would allow the 85-year-old Mr. McMahon and his wife, Pamela, to remain in the six-bedroom home."

The Journal reports McMahon was in arrears to the tune of $644,000 on a $4.8-million loan, and has fallen on hard times -- he broke his neck in a fall 18 months ago and has not been able to work in that time. The Journal also reports the McMahon home has been on the market for roughly two years and is now listed for $5.75 million.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com
Photo credit: Associated Press

Comments

[toby]

I'm kind of shocked. Ed McMahon is obviously really really bad with is money.

Apparently he didn't save ANYTHING form the Tonight gig.

[Jeff Stokes]

Why does a 85 year old man have a 5 Million dollar mortgage? He is a fool.

[toobad]

One more example of Americans living beyond their means.

Americans have become delusional into thinking "they are entitled to live like the Rich"

People need to go hungry for a while to remind them that they are working class.

No sympathy from me for those that spend spend...especially someone who made MILLIONS.

[Billy Foster]

Serves him right. For sending out those publishers clearinghouse envelopes.

[Carolyn Sherley]

No matter how famous you are or aren't, if you live beyond your means, it will catch up with you. Obviously, someone like Mr. McMahon thought the money tree would never stop blooming. Well, guess what? He's just like the rest of us. And at 85 years old, if you haven't put by something for a rainy day, you obviously weren't thinking.

[bungalowrose]

Ed obviously need to move into a small cottage that he can afford!!!!!!!!!!!

[Keith]

According to Wikipedia, he was worth $200 Million in the 1990s. And now at 85 he needs to work to pay the mortgage? Sounds like good old fashioned American money management and budgeting. What a pathetic story.

[dudeman1961]

"Where's...Johnny?!?"

[Jaye]

I just can't bring myself to feel sorry for him. This man has had a long career in show business. He should OWN a home at his age instead of still paying on a mortgage. It's living above your means ( and for him that had to be a lot) that gets some people to this point. He needs to downsize. Sorry, Ed, you're just like the rest of us. Who wants to be worrying about having to work to make a mortgage payment when you're in your 80's? This man had no foresight whatsoever.

[anony]

This guy is 85 years old! Must he still work to make a living??? Shouldn't he be a content retiree enjoying his remaining time on earth?

Then again, I bet he and his wife will not be homeless and living on the street any time soon....

[RB]

Okay, they're blaming McMahon’s foreclosure woes, McMahon an 85-year-old-man, on not being able to work because he broke his neck. Let me repeat that, an EIGHTY-FIVE YEAR OLD MAN. Talk about a guy who wasn't planning on taking any money with him.

According to the Times, "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."

Let me get this straight, McMahon received more money than his entire house is worth in an insurance settlement on the house...and he didn't use a dime to pay off his mortgage.

This should qualify McMahon as both and idiot and insane.

[x-man]

McMahon borrowed 4.5 MILLION? So that means he put down what, like 10%? On a 5M+ house!

This one striking example is why the platinum triangle is poised for melt down. How many people out there on the westside borrowed seven figures plus on option ARMs. Most of these high earners had 5 year resets, and the loans really hit the westside in 2004. What's five years from that?

Wait! It's 2009!

Turns out you CAN'T afford a 3M house if your household income is 300K!

Platinum default wave coming!

[ATriana]

I'm sure Ed McMahon's money troubles are attributed to his Hollywood trophy wives. Its the same old story and a sad one. I hope it works out somehow. I truly miss Ed and Johnny.

[William Jones]

These are trying times. Does Johnny's ex still own that big spread in Malibu that Johnny built? It was so impressive that when Bob Newhart was walking through it he asked, "Where is the gift shop?"

I think if she still owns the place she should take in Ed and his wife. There must be some reward to being such a loyal side-kick for so many years...the hearty guffaws at so many lame jokes must have earned Ed some credit in Johnny's heart (or that of his widow).

[Tim K.]

I think this is less a story about the housing market than it is about the difficulties celebrities have in managing their money.

Often celebrities rely heavily on "advisors" who steer them wrong and keep them in the dark.

The take away lesson is that you should ALWAYS learn about where your own money is going. Don't trust that to anyone - not your best friend, not even your spouse. You alone are in charge of your final destiny when all is said and done. If you don't understand it, either LEARN or move your money to where you DO understand it.

[BottomFisher]

Johnny: Hey Ed....did you break your neck trying to save your home?

[gman]

I guess he should have kept one of those Publishers Clearinghouse checks.

[mike]

this all sounds like mcmahontionization to me.

[BottomFisher]

Rodney: Can't we all just be bailed out?

[HulaGirl]

Aside from his money mismanagement the real reason he can't find work is (cue the Tonight Show theme song), Because he's OLD. Which is practically illegal in California.

Wait and wee how many defaults happen after actors and writers turn a certain age. 50 may be the new 30 -- any where else but Hollywood.

[IToldu2CashOut]

Last time I check Beverly Hills was on the west side...I must be mistaken though because all of those upstanding rich folks would never buy more than they could afford and theres no way there could be a housing bubble on the west side. This must be the in the IE Beverly Hills.

[dontmatta]

He should have been living off his retirement money long ago and any money he makes now shouldn't have been for his living "wages".

[Duke of Moral Hazard]

I saw a comment recalling Michael Jackson's Neverland Ranch woes fly by. According to an LA Times story, the place was never auctioned off because a company called Colony Capital LLC bought the loan.

According to their website, they move money all over the world, and even have a full time guy in charge of their holding companies in Luxembourg. Luxembourg...isn't that the happy little country where people used to hide money until Germany outed them?

They are heavily invested worldwide in hospitality, real estate, "underperforming debt" and gambling. The dude who runs the show: "served in the Reagan administration as Deputy Undersecretary of the Department of the Interior." Wouldn't it be fun to go back and take a look at what he was up to during his government days. Bet he got and made some sweeeeeeeeet deals.

Hey Colony Capital... go after Ed... he's got the underperforming loan, the prime real estate, and you can probably get him to sign something that will cross collateralize the rest of his real estate. It's a win-win.

Is Neverland ranch now secured by Beatles music?

[RZ]

How does any bank let someone go without paying over $600K BEFORE they begin foreclosure proceedings? I don't care if the house if worth $400,000 or $40 million. That's a ridiculously high amount to wait for before foreclosure.

But I also wonder whether this is a case of McMahon not wanting to pay what he owes, and walking away rather than paying.

[Ace]

Isn't he eligible for social security?