âI made a lot of money, but you also can spend a lot of money."
What a dumbass. Does he expect sympathy? Why is it SO difficult for people, especially those making a lot of money, to live within their means? WHY WHY WHY??
http://www.nytimes.com/2008/06/15/fashion/15mcmahon.html
ED MCMHAHON'S 90210 MORTGAGE CRISIS
MONEY TROUBLE Ed McMahon, who is best known as Johnny Carsonâs sidekick, found his home in the Hollywood Hills facing foreclosure after he defaulted on his a mortgage.
By MIREYA NAVARRO
Published: June 15, 2008
LOS ANGELES
WITH sweeping canyon views, gated access and nearby homes owned by the likes of Britney Spears, Ed McMahonâs house above Beverly Hills looks like the symbol of a life well paid.
That is why it came as a shock when Mr. McMahon, best known as Johnny Carsonâs sidekick, confirmed this month that he was facing foreclosure.
He quickly became a national symbol of an overspent borrower struggling with the mortgage crisis. But Mr. McMahon had an advantage over the average homeowner: he could go on âLarry King Liveâ to talk about his plight.
âIf you know where the money is, would you let me know?â Mr. McMahon joked during an interview in the six-bedroom, five-bathroom Mediterranean-style mansion he and his wife, Pamela, have called home for nearly 20 years.
In his case, he added more seriously, the troubles were not about a subprime loan or ballooning adjustable rate mortgage, but simple overspending. âI made a lot of money, but you also can spend a lot of money,â he said.
At 85, Mr. McMahon appears to be his jovial self. But he is in the twilight of a successful career, as a broadcast announcer, professional pitchman for brands like Alpo and Budweiser, and television host for shows like âStar Searchâ and âTVâs Bloopers and Practical Jokes.â He also drew income from acting, radio and writing books, and from serving as a celebrity spokesman for the sweepstakes sponsored by American Family Publishers.
His house is the one product he has not been able to sell. In the two years the 7,000-square-foot property has been listed on the market, currently at $6.5 million, he has not received a single offer, he said. The recent publicity is turning that around. By the end of last week, there were two offers for the house, said his real estate agent, Alex Davis.
Earlier this year, he defaulted, he said, on a $4.8-million loan from a unit of Countrywide Financial Corporation, the mortgage lender that is one of a number of companies involved in the mortgage-market implosion. Mr. McMahon, who is more than $600,000 in arrears on the loan, refused to discuss any other details of that or any other debts. (According to Los Angeles County Superior Court records, he also owes American Express more than $747,000 after an arbitration judgment last April.)
Foreclosures are happening at all income levels, but Mr. McMahon lives on Mulholland Drive in the Santa Monica Mountains, a 90210 neighborhood that real estate brokers say is not in a price slump.
Mr. Davis, the real estate agent, said that there had been no urgency to sell until a few months ago, and that he had been selective in showing the property. One factor, he said, was the need to respect his clientsâ privacy; but another, âfor quite some time,â was the need to avoid the paparazzi camped out outside the gate.
âEverybody was following Britney Spears, and we thought a lot of people were trying to get into the communityâ by posing as potential buyers, he said, adding that Ms. Spearsâs home is now also for sale, and that the scene has âsimmered down.â
The McMahon house, full of Hollywood pictures and memorabilia and decorated by Mrs. McMahon, is listed as a âcelebrity estate.â A well-publicized mold problem, which led to a $7.2-million insurance settlement, has been fixed, Mr. Davis said.
But real estate agents in Beverly Hills say that an inability to sell in two years point at a too-high asking price. Originally $7.6 million in 2006, the price was lowered several times, to $5.7 million in January, then climbed to the current $6.5 million. (Mr. Davis said the increase was needed to cover Mr. McMahonâs debt.)
âItâs not the market or Britney Spears,â said Drew Mandile, an agent for Sothebyâs International Realty in Beverly Hills, who brought clients to see the house in 2006. âTwo years means youâre a stubborn person and you refuse to face the reality of the value of the home.â
Mrs. McMahon offered another explanation. âEd and I prayed that we wouldnât sell it,â she said, admitting that they donât really want to move.
The financial crisis was long in the making. The McMahons cite his two divorces, their need to take care of family and friends, bad money management and worse investments. He also lost work because of the bad economy, and a neck injury he suffered in a fall (he faces his third surgery in the next few weeks). âA series of these things befell us, and thatâs the easiest way to explain where we are right now,â he said.
He didnât gamble, he said, and alcohol wasnât part of the equation, despite the running joke on âThe Tonight Showâ portraying him as an enthusiastic imbiber. âI havenât had a drink in five years,â he said.
A Marine fighter pilot who fought in the Korean War and retired with the rank of colonel, Mr. McMahon said he hasnât stopped working since his first professional radio job at age 17. He recently released his latest book, âWhen Television Was Young,â which he wrote with David Fisher. His publicist, Howard Bragman, points at one common misconception. All those millions celebrities make, he said, dwindle fast after they pay agents, managers, lawyers, publicists like himself and, of course, the Internal Revenue Service. Next thing you know, Mr. Bragman said, âyou take $20,000 a month.â
Since his neck injury last year, in a fall he didnât want to discuss, Mr. McMahon, who has four grown children (another son died) and two adopted children, has worked only on his weekly show, âThe Ed McMahon Show,â for the USA Radio Network, which he tapes from his home office.
âHe has the texture to be able to withstand this,â said Ron Seggi, his longtime producer and close friend. âHe doesnât have a down bone in his body.â
In fact, he went on âLarry King Liveâ wearing his neck brace to share his optimism with other struggling homeowners. âAll kinds of things can happen,â he said. âLet it work out great for you, O.K.?â
Because Mr. McMahon was always the second banana, making it easier for the public to identify with him, his plight may resonate more than those of many other celebrities who have hit financial bottom. âWe can certainly see ourselves in Edâs role,â said Walter J. Podrazik, an author of âWatching TV: Six Decades of American Television.â âOne of his trademark identifiers was the hearty laugh, even if the joke was falling flat. You and I could do that.â
Heâs earned sympathy; a basket on Ms. McMahonâs desk is slowly filling up with letters from the public. And a caller on âLarry King Liveâ said he wanted to send in a contribution, which Mr. McMahon refused. But Jay Leno and Donald Trump have publicly vowed to help; others have quietly offered jobs, Mr. Bragman said.
The renewed interest in the house from potential buyers is a good sign, but offers are yet to be negotiated. Mr. Davis, the real estate agent, had said last week that Mr. McMahon was also in negotiations with the lender, and a short sale, in which the house sells for less than whatâs owed on the mortgage, was possible.
Mr. McMahon â in bright orange shirt and suspenders, followed around by some of his seven dogs â said he has no doubt things will work out.
âIâm not in the poorhouse,â he said. âIâm a lucky man.â
What a dumbass. Does he expect sympathy? Why is it SO difficult for people, especially those making a lot of money, to live within their means? WHY WHY WHY??
http://www.nytimes.com/2008/06/15/fashion/15mcmahon.html
ED MCMHAHON'S 90210 MORTGAGE CRISIS
MONEY TROUBLE Ed McMahon, who is best known as Johnny Carsonâs sidekick, found his home in the Hollywood Hills facing foreclosure after he defaulted on his a mortgage.
By MIREYA NAVARRO
Published: June 15, 2008
LOS ANGELES
WITH sweeping canyon views, gated access and nearby homes owned by the likes of Britney Spears, Ed McMahonâs house above Beverly Hills looks like the symbol of a life well paid.
That is why it came as a shock when Mr. McMahon, best known as Johnny Carsonâs sidekick, confirmed this month that he was facing foreclosure.
He quickly became a national symbol of an overspent borrower struggling with the mortgage crisis. But Mr. McMahon had an advantage over the average homeowner: he could go on âLarry King Liveâ to talk about his plight.
âIf you know where the money is, would you let me know?â Mr. McMahon joked during an interview in the six-bedroom, five-bathroom Mediterranean-style mansion he and his wife, Pamela, have called home for nearly 20 years.
In his case, he added more seriously, the troubles were not about a subprime loan or ballooning adjustable rate mortgage, but simple overspending. âI made a lot of money, but you also can spend a lot of money,â he said.
At 85, Mr. McMahon appears to be his jovial self. But he is in the twilight of a successful career, as a broadcast announcer, professional pitchman for brands like Alpo and Budweiser, and television host for shows like âStar Searchâ and âTVâs Bloopers and Practical Jokes.â He also drew income from acting, radio and writing books, and from serving as a celebrity spokesman for the sweepstakes sponsored by American Family Publishers.
His house is the one product he has not been able to sell. In the two years the 7,000-square-foot property has been listed on the market, currently at $6.5 million, he has not received a single offer, he said. The recent publicity is turning that around. By the end of last week, there were two offers for the house, said his real estate agent, Alex Davis.
Earlier this year, he defaulted, he said, on a $4.8-million loan from a unit of Countrywide Financial Corporation, the mortgage lender that is one of a number of companies involved in the mortgage-market implosion. Mr. McMahon, who is more than $600,000 in arrears on the loan, refused to discuss any other details of that or any other debts. (According to Los Angeles County Superior Court records, he also owes American Express more than $747,000 after an arbitration judgment last April.)
Foreclosures are happening at all income levels, but Mr. McMahon lives on Mulholland Drive in the Santa Monica Mountains, a 90210 neighborhood that real estate brokers say is not in a price slump.
Mr. Davis, the real estate agent, said that there had been no urgency to sell until a few months ago, and that he had been selective in showing the property. One factor, he said, was the need to respect his clientsâ privacy; but another, âfor quite some time,â was the need to avoid the paparazzi camped out outside the gate.
âEverybody was following Britney Spears, and we thought a lot of people were trying to get into the communityâ by posing as potential buyers, he said, adding that Ms. Spearsâs home is now also for sale, and that the scene has âsimmered down.â
The McMahon house, full of Hollywood pictures and memorabilia and decorated by Mrs. McMahon, is listed as a âcelebrity estate.â A well-publicized mold problem, which led to a $7.2-million insurance settlement, has been fixed, Mr. Davis said.
But real estate agents in Beverly Hills say that an inability to sell in two years point at a too-high asking price. Originally $7.6 million in 2006, the price was lowered several times, to $5.7 million in January, then climbed to the current $6.5 million. (Mr. Davis said the increase was needed to cover Mr. McMahonâs debt.)
âItâs not the market or Britney Spears,â said Drew Mandile, an agent for Sothebyâs International Realty in Beverly Hills, who brought clients to see the house in 2006. âTwo years means youâre a stubborn person and you refuse to face the reality of the value of the home.â
Mrs. McMahon offered another explanation. âEd and I prayed that we wouldnât sell it,â she said, admitting that they donât really want to move.
The financial crisis was long in the making. The McMahons cite his two divorces, their need to take care of family and friends, bad money management and worse investments. He also lost work because of the bad economy, and a neck injury he suffered in a fall (he faces his third surgery in the next few weeks). âA series of these things befell us, and thatâs the easiest way to explain where we are right now,â he said.
He didnât gamble, he said, and alcohol wasnât part of the equation, despite the running joke on âThe Tonight Showâ portraying him as an enthusiastic imbiber. âI havenât had a drink in five years,â he said.
A Marine fighter pilot who fought in the Korean War and retired with the rank of colonel, Mr. McMahon said he hasnât stopped working since his first professional radio job at age 17. He recently released his latest book, âWhen Television Was Young,â which he wrote with David Fisher. His publicist, Howard Bragman, points at one common misconception. All those millions celebrities make, he said, dwindle fast after they pay agents, managers, lawyers, publicists like himself and, of course, the Internal Revenue Service. Next thing you know, Mr. Bragman said, âyou take $20,000 a month.â
Since his neck injury last year, in a fall he didnât want to discuss, Mr. McMahon, who has four grown children (another son died) and two adopted children, has worked only on his weekly show, âThe Ed McMahon Show,â for the USA Radio Network, which he tapes from his home office.
âHe has the texture to be able to withstand this,â said Ron Seggi, his longtime producer and close friend. âHe doesnât have a down bone in his body.â
In fact, he went on âLarry King Liveâ wearing his neck brace to share his optimism with other struggling homeowners. âAll kinds of things can happen,â he said. âLet it work out great for you, O.K.?â
Because Mr. McMahon was always the second banana, making it easier for the public to identify with him, his plight may resonate more than those of many other celebrities who have hit financial bottom. âWe can certainly see ourselves in Edâs role,â said Walter J. Podrazik, an author of âWatching TV: Six Decades of American Television.â âOne of his trademark identifiers was the hearty laugh, even if the joke was falling flat. You and I could do that.â
Heâs earned sympathy; a basket on Ms. McMahonâs desk is slowly filling up with letters from the public. And a caller on âLarry King Liveâ said he wanted to send in a contribution, which Mr. McMahon refused. But Jay Leno and Donald Trump have publicly vowed to help; others have quietly offered jobs, Mr. Bragman said.
The renewed interest in the house from potential buyers is a good sign, but offers are yet to be negotiated. Mr. Davis, the real estate agent, had said last week that Mr. McMahon was also in negotiations with the lender, and a short sale, in which the house sells for less than whatâs owed on the mortgage, was possible.
Mr. McMahon â in bright orange shirt and suspenders, followed around by some of his seven dogs â said he has no doubt things will work out.
âIâm not in the poorhouse,â he said. âIâm a lucky man.â
