Ed McMahon Home Foreclosure

Ed McMahon – Soon Could Be Bankrupt & Homeless Living On The Streets 85 year old Ed McMahon (Edward Peter Leo McMahon Jr.) Johnny Carson’s “SideKick” on “The Tonight Show” is another victim of the Mortgage Crisis in California. The Wall Street Journal reported Tuesday that McMahon was $644,000 in arrears on a $4.8 million loan for a home in Beverly Hills, California. The Mortgage Company ReconTrust, a division of Countrywide Financial (CFC, Fortune 500), filed a notice of default related to a loan for McMahon’s house in Los Angeles County Recorder’s Court on Feb. 28. Ed McMahon, the longtime sidekick to television star Johnny Carson, faces the possible loss of his Beverly Hills home to a foreclosure action initiated by a unit of Countrywide Financial Corp. Howard Bragman, a spokesman for Mr. McMahon, said late Tuesday that his client is having "very fruitful discussions" with the lender and hopes to find a resolution. It isn't clear whether that would allow the 85-year-old Mr. McMahon and his wife, Pamela, to remain in the sixbedroom home. A Countrywide spokeswoman said the lender couldn't comment in such cases "due to privacy issues." Mr. McMahon, a jovial fixture of American television for decades, is one of the most prominent people caught up in a wave of mortgage defaults that has devastated lowincome areas, suburbia and even a few posh gated communities, such as the one where the McMahons live. U.S. Rep. Laura Richardson, a christiesgreatestates.com California Democrat, recently lost a home in Ed McMahon faces possible foreclosure on his Sacramento to a foreclosure. Rep. Richardson Beverly Hills home. didn't respond to requests for comment. ReconTrust, a unit of mortgage lender Countrywide Financial, on Feb. 28 filed a notice of default on a $4.8 million Countrywide loan backed by Mr. McMahon's home. The notice was filed with the Los Angeles County Recorder's Office but hasn't previously come to light. According to the filing, Mr. McMahon was then about $644,000 in arrears on the loan. It isn't clear whether Countrywide still owns the loan or is acting on behalf of investors who acquired it. Public records also show that Mr. McMahon had a separate home-equity line of credit from Countrywide of up to $300,000 secured by the same house. Mr. McMahon's home has been on the market for about two years, his real-estate agent Alex Davis said. Mr. Davis said the price had been reduced, but he couldn't immediately provide details. The Christie's Great Estates Web site, which includes homes listed by Mr. Davis, lists the asking price at $5.75 million and says it has a canyon view and a master-bedroom suite with his and her bathrooms. Mr. McMahon broke his neck in a fall about 18 months ago and hasn't been able to work, Mr. Bragman said. That health problem, along with the weak housing market and economy, has forced Mr. McMahon into foreclosure proceedings, Mr. Bragman said. Associated Press Ed McMahon The McMahons "understand that they are in the same situation as hundreds of thousands of other hard-working Americans, and their hearts go out to them," Mr. Bragman said. It isn't inevitable that the McMahons will lose their home to foreclosure. Lenders often ease terms on loans or provide more time for borrowers to catch up. Lenders also sometimes agree to accept less than the full amount due on the loan if the borrower can find a buyer for the home. Write to James R. Hagerty at bob.hagerty@wsj.com and Glenn R. Simpson at glenn.simpson@wsj.com