It seems like the foreclosure nightmare has trickled up to the rich and famous! Never one to not exploit someone else’s misfortune, the cadaverous Larry King interviewed Ed McMahon and his
golddigger wife Pamela in the wake of the imminent foreclosure on their mansion.
LOS ANGELES (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.
[Spokesman Howard] 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.
Not to sound unsympathetic, but if you got a $7.2 million settlement, and your wife has to now shop at the dollar store, then I don’t think you are managing your finances very well. I doubt that you furnished your mansion at K-Mart. Have a friggin’ garage sale! But I digress….
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.
And now we can add yet another celeb who will be pushing a shopping cart with his belongings in it up Mulholland Drive. From bodogBEAT:
Since Ed McMahon’s foreclosure crises was reported yesterday, the next celebrity victim of the mortgage crisis is multiple world champion boxer Evander Holyfield.
Holyfield’s home has been put up for auction block and TMZ reports he also owes $550,000 to his landscape dude. That’s a lot of bush! He is also being sued for back child support.
Once again, I’m having trouble squeezing out a tear. I think I will save my sympathy for the poor shlubs who don’t have celebrity to fall back on when they lose everything. From the Los Angeles Times:
WASHINGTON — Mortgage delinquencies and foreclosures reached record levels in the first three months of this year, driven higher by increasing housing woes in California and Florida, the Mortgage Bankers Assn. reported Thursday.
Nationally, 6.35% of all mortgages were at least 30 days past due — but not yet in foreclosure — on a seasonally adjusted basis in the first quarter, up from 5.82% in the fourth quarter of last year and 4.84% in the first three months of 2007, the association reported.
An additional 2.47% of mortgages were in the process of foreclosure on March 31, up from 2.04% at the end of last year and 1.28% at the end of March 2007. Those figures aren’t seasonally adjusted.
The number of foreclosure starts reached a new 29-year high, as did the percentage of homes in foreclosure and the percentage in delinquency.
Although the mortgage crisis began in the sub-prime market, the number of troubled prime loans is on the rise. Of all loans that entered the foreclosure process in the first quarter, 42% were prime mortgages and 50% were sub-prime loans. Loans insured by the Federal Housing Administration accounted for the remainder.
All I can say is thank goodness for those compassionate conservatives in Washington 😀 :
May 9 (Bloomberg) — The U.S. House of Representatives passed legislation to let a federal agency insure up to $300 billion in mortgages to help homeowners avert foreclosure, a day after the White House threatened to veto the measure.
The House voted 266-154 yesterday to approve the housing package offered by Massachusetts Democrat Barney Frank. The plan would allow the Federal Housing Administration to insure refinanced mortgages after loan holders agree to cut principal to make payments affordable.
Democrats in Congress are at odds with Republican lawmakers and the Bush administration over efforts to stem foreclosures amid the worst housing slump in a quarter century. The White House favors a voluntary, industry-led program to modify loan terms and this week issued a veto threat against Frank’s bill.
Republicans oppose using government funds, saying that would reward lenders and investors who acted recklessly and is unfair to homeowners who are keeping up with mortgage payments. Democrats including Frank say government funding is needed to preserve neighborhoods and help homeowners who were steered into loans they couldn’t afford.
Frank’s FHA proposal would cost $2.7 billion and help about 500,000 homeowners, according to a Congressional Budget Office estimate. Federal Reserve Chairman Ben S. Bernanke indicated support for the plan during a May 5 speech without explicitly endorsing it.
The Democrats’ housing package also would expand the FHA’s role in insuring mortgages and strengthen oversight of Fannie Mae and Freddie Mac, the government-chartered companies that are the biggest sources of money for U.S. mortgages. It includes a provision that would shield loan-servicing companies that modify mortgages from investor lawsuits.
The legislation didn’t get the two-thirds majority vote necessary to override a presidential veto, [Frank] said.
Frank’s counterpart in the Senate, Banking Committee Chairman Christopher Dodd, said he is working with colleagues on the panel to pass similar legislation.
“The passage of this bipartisan measure sends a clear signal to Americans — and the White House — that Congress is committed to helping people keep their homes and stabilize the markets,” Dodd, a Connecticut Democrat, said yesterday in a statement.
The House yesterday also approved a bill that would create a $15 billion loan-and-grant program to help states buy and rehabilitate foreclosed homes.