Ed McMahon Foreclosure
The Wall Street Journal reported on June 4, 2008, that 85-year-old television personality, Ed McMahon, is facing foreclosure on his Beverly Hills, California, home.1 A unit of Countrywide Financial Corp. filed a notice of default on February 28, 2008. McMahon is reported to owe $644,000 on a $4.8 million loan.1
On August 15, 2008, The Associated Press reported that Donald Trump offered to buy McMahon's Beverly Hills mansion and in turn lease it back to him.2
Fast Facts
- The 7,000-square-foot home has six bedrooms and five bathrooms3
- The house has been on the market for about two years3
- The property overlooks Mulholland Drive
- Price was reduced to $6,999,000 then reduced again to $6,750,0003
- In May 2008, the home was reduced once again to $6,250,0003
- In August 2008, the home listed for $4.6 million2
- McMahon bought the house in 1990 for almost $5 million3
Issues Surrounding Foreclosure
In 2005, Ed McMahon broke his neck in a fall and he has been unable to work.4
He has been trying to sell the home but Britney Spears' home is nearby and the constant swarm of paparazzi is a put-off for potential buyers.3
Mold Contamination
McMahon's home was contaminated with mold after a pipe burst in 2001. McMahon sued his insurance company for $20 million after he claimed the mold ruined memorabilia and caused illness in him and his wife and caused the death of the family's dog. The house had to be gutted.3
The case settled out of court for $7.2 million.3
Donald Trump's Offer
In August 2008, Donald Trump reportedly offered to buy McMahon's home to save it from foreclosure. After the purchase, Trump would turn around and lease the home back to McMahon. Trump stated that even though he doesn't personally know McMahon, "it would be an honor to help him out."2
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