Ed McMahan losing home...

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Cowboy2U

Federal Marshal
Mar 31, 2008
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#1
Anybody else see this? Johnny Carson's old side kick is literally bankrupt and is getting his home foreclosed on. Man, how do you spend and mismanaged millions of your own dollars and end up on the street. Amazing.
 
Nov 1, 2004
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#3
Good one Kaje.

Is it "just" that his home is being forclosed on ... or is he also gonna file bankruptcy? Two different things.
 

Slugger926

Federal Marshal
Oct 19, 2004
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#4
http://www.clusterstock.com/2008/6/ed_mcmahon_loses_home

More facts:

Home is worth $4.8 million.

He has been out of work for 18 months due to neck injury, and been trying to sell the home since. He is blaming his neighbor, Britney Spears, for not being able to sell it thanks to the PAP.

He still owes $600K on the house, and is trying to fight off foreclosure while trying to sell it.

It isn't as bad as the media is making it sound.
 

Cimarron

It's not dying I'm talking about, it's living.
Jun 28, 2007
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#5
http://www.clusterstock.com/2008/6/ed_mcmahon_loses_home

More facts:

Home is worth $4.8 million.

He has been out of work for 18 months due to neck injury, and been trying to sell the home since. He is blaming his neighbor, Britney Spears, for not being able to sell it thanks to the PAP.

He still owes $600K on the house, and is trying to fight off foreclosure while trying to sell it.

It isn't as bad as the media is making it sound.
I wonder if I had 4.2 million dollars in equity if everyone would be worried about me being on the street?
 

Rob B.

I'm......Batman.
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#6
I wonder if I had 4.2 million dollars in equity if everyone would be worried about me being on the street?
You, as an orange brother, yes I would worry if you were on the streets no matter how much equity you had, McMahon, I'm not so sure I'll lose much sleep over.:D
 
Nov 1, 2004
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#9
So what do you think ... take one of those nice new half a mil homes in Stillwater ... airlift it to Ed's neighborhood ... and all the sudden it's worth about 5 mil? Sounds about right to me.
 

Cimarron

It's not dying I'm talking about, it's living.
Jun 28, 2007
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#11
You, as an orange brother, yes I would worry if you were on the streets no matter how much equity you had, McMahon, I'm not so sure I'll lose much sleep over.:D
You want my address to start sending checks? :D
 

FWPoke

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#12
The equity is great if you can access it. If he has no income, though, no one is going to give him a cash-out refi or a home equity loan to pay what he owes. All that would do is give him an even bigger payment that he has no means of paying.
 

steross

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#13
You can always access at least some of your equity by selling the house. If you can't do that, you really have no equity. Problem is, people have 2006 level pie-in-the-sky ideas about how much equity they have.
 

Cimarron

It's not dying I'm talking about, it's living.
Jun 28, 2007
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#14
The equity is great if you can access it. If he has no income, though, no one is going to give him a cash-out refi or a home equity loan to pay what he owes. All that would do is give him an even bigger payment that he has no means of paying.
This is true, but most talk about equity in their homes in the range of $100,000 (when they are mostly paid for like his) not 4 Million plus! Even if it isn't 4 million maybe 2 million, he could still sell it and retire far better off than most Americans!
 

snuffy

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#16
This is a edtoiral that came out when this story came up a few weeks ago and gives some good food for thought.
By Glenn Beck

Glenn Beck urges that we take a hard look at what's really at the center of the U.S. mortgage meltdown.

NEW YORK (CNN) -- "One death is a tragedy; a million is a statistic."

If you replace the word "death" with the word "foreclosure," you could easily apply Stalin's famous quote to the current state of America's housing market.

Over a million homes are now in foreclosure, the highest rate ever recorded. Nearly 3 million homeowners have now missed at least one payment. As of the end of March, one in 11 loans were in trouble.

But until Ed McMahon went on "Larry King Live" last week to talk about his own housing trouble and, according to The New York Times, "humanized" the problem, all of that just seemed like, well, statistics.

McMahon explained that, despite earning millions during his career, he is now about $644,000 behind on his mortgage payments. Foreclosure, he said, is now a real possibility.

It was a pretty shocking revelation, and it generated a typical American response: overwhelming generosity. Within minutes of McMahon's admission, a caller was on the phone wondering how he could donate. McMahon went on to say that "wonderful things have happened" recently, and he's now optimistic that the house will sell.
Don't Miss


That's great news, but lost in the outpouring of compassion is a hard look at the very thing at the center of the problem: the McMahon McMansion itself.

Listed at $6.25 million, the house is a six-bedroom, five-bathroom, 7,000-square-foot Beverly Hills estate. It's in The Summit, a gated hilltop community off Mulholland Drive. Britney Spears is among the celebrities who live in the area.

McMahon bought the house in January 1990 and, despite Los Angeles home prices being up 106 percent since then, reportedly still owes about $5 million on it. In other words, like so many other Americans, McMahon used his home as an ATM over the years. But unlike most other Americans, a sale at his asking price would allow him to pay off his lenders and still pocket several hundred thousand dollars.

None of that means McMahon's problems aren't important or relevant; it's just that we need to have some perspective. A celebrity who's made millions of dollars, won a $7.2 million legal settlement and owns, at least on paper, a home that has more than doubled in value, should not be the person who "humanizes" the problem for us.

A lot of people hear the word "foreclosure" and immediately picture a family living in an alleyway or in a city shelter, but that's not usually the reality. Take the McMahons, for instance. In a worst-case scenario, they would probably end up renting a luxury condo nicer than what 99.9% of Americans will ever live in. Is that ideal? No. Would their credit score be dinged up a bit? Sure. But is it really the terrifying scenario that most of us imagine?

Again, I'm not trying to beat up on McMahon here; it's just that he represents how people put compassion ahead of common sense. Compassion makes you want everyone to keep their homes and live happily ever after. Common sense tells you that your donation will do nothing to make that happen. Besides, is donating money to help keep a celebrity out of a luxury condo really the best use of your charity dollars?

Unlike many others, McMahon was not looking for a handout or to put the blame on anyone but himself. "Well, if you spend more money than you make," he told Larry King, "you know what happens."

Unfortunately, that's exactly the problem: Most people have no idea what happens when they overspend. And even if they do, they're not willing to take responsibility for their own actions.

"How can this be?" they demand. "I was guaranteed the American dream! I was told to buy as much house as a bank would let me, and then take out another loan to make the house even bigger. I was told to buy big televisions and luxury cars and to take great vacations and drink great wine."

It all went according to plan until real life intervened. And now, something worse is intervening: our government.

The same night the McMahon interview aired, I got a spam e-mail from Matthew Lesko, the guy who wears a question-mark suit on infomercials. He was informing me that, no matter my income, there are plenty of free government programs that I can take advantage of to help me pay my mortgage.

Perfect. Just what we need: free money for those who got into trouble by spending money freely.

Do we need to help the people who would legitimately be out on the street if they lost their home? Absolutely. But those programs are already in place. We have strict bankruptcy laws, unemployment benefits, welfare programs and health care plans -- all financed by taxpayers.

Why should there be a taxpayer-funded mortgage bailout program on top of it all?

Whether one person loses a home, or a million do, it isn't a tragedy, it's a lesson. And like all lessons, we can learn from it.

Since I started with a Stalin quote, I'll end with one from Henry Ford: "Failure is simply the opportunity to begin again, this time more intelligently."

For proof, just ask anyone who's been foreclosed on if they'll ever buy a home with some exotic "negative-amortization option ARM" mortgage again. Their answer will probably be a resounding "no," and that's a lesson that money can't buy; unless, of course, that money happens to be a huge check delivered by Ed McMahon and the Prize Patrol.

The opinions expressed in this commentary are solely those of the writer.
 

FWPoke

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#17
This is true, but most talk about equity in their homes in the range of $100,000 (when they are mostly paid for like his) not 4 Million plus! Even if it isn't 4 million maybe 2 million, he could still sell it and retire far better off than most Americans!
2 problems. 1) He's been trying to sell it and had no luck, so his equity means nothing from that standpoint. 2) He has no income. Therefore, it doesn't matter how much equity he has, he can't borrow it. In this case, he would be able to borrow $2.4mil on a Home Equity Loan if he could show that he could actually pay it back, which he can't. So he's screwed.