The Real Story of Ed McMahon’s Foreclosure: He’s Apparently Broke

By now you’ve seen all the media coverage of the possible foreclosure on celebrity endorser and spokesman Ed McMahon’s Beverly Hills mansion.

The media is acting as if rich people never get foreclosed. The LA Times just reported on foreclosures on multi-million homes in Napa, the center of Wine Country and all things chic:

Elsewhere in Napa, a 5,676-square-foot Mediterranean villa on a 35-acre lot was recently foreclosed on. It’s now on the market for $5.255 million.

Seven other houses in the city worth more than $1 million each are in default or have been foreclosed on, according to ForeclosureRadar, a company that sells default data.

Buyers last week of a Spanish-style, 3,220-square-foot house on a cul-de-sac here got a bargain: $1 million for a hilltop home in Northern California’s wine country, with views to San Francisco in the distance.

Two years ago, the same property sold for $1.4 million. But after the lender foreclosed on the property, the home was deeply discounted. Real estate agent Michael Snider, who handled the sale, thinks more such sales are on the way.

“It’s just beginning,” Snider said.

The wealthy may be able to hold off foreclosure longer than others, but eventually those with debt they can’t handle will be foreclosed on, he said.

Add Ed McMahon to the list.

But the REAL story that the media isn’t talking about is: Why is Ed McMahon, who is 85-years old and has been on television for DECADES- apparently broke?

Did he PLAN for retirement? Did he ever save any money? If not, why not?

Shouldn’t he have stocks, bonds, other investments?

All we know is that the house is listed for $5.75 million. McMahon’s loans, from the LA Times:

McMahon took out two loans on the property totaling $4.5 million and later borrowed an additional $300,000 against the house, according to ForeclosureRadar. The loans were obtained through Countrywide Home Loans Inc.

He’s been trying to sell it for two years, with no luck. He’s is in arrears by $644,000!

But, again, he is 85 YEARS OLD.

WHERE IS HIS MONEY????

From his spokesman:

Bragman, his spokesman, said McMahon fell and broke his neck about 18 months ago and has been unable to work since.

“The ideal situation would be that he would be healthy and able to earn a living to pay for his house,” Bragman said.

Why is he working when he is 85? Can you even imagine living paycheck to paycheck at that age?

Unfortunately, many of us think we’ll work for forever. So we save nothing. That is the only explanation.

Ed McMahon was Johnny Carson’s sidekick on the Tonight Show for years. He was also the host of Star Search. You’d think he made decent money from that.

Oh- and there’s this:

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.

According to a lawsuit he filed, the trouble began when a pipe broke and water flooded a den. Mold was later discovered throughout the house. McMahon and his wife, Pamela, blamed faulty cleanup.

Did he ever collect on that settlement? If so- where did that money go???

Too many unanswered questions.

The REAL story here isn’t the foreclosure. Those are a dime a dozen (even in the upper bracket, sadly.)

The REAL story is how Ed McMahon, after decades in well-paying show business jobs, can be 85-years old and apparently broke.