Ed McMahon facing foreclosure

[disneysteve]

I heard on the news this morning that Ed McMahon, long-time co-host of the Tonight Show, is facing foreclosure of his multimillion dollar mansion. It really goes to show that financial problems and poor money management plague people of all incomes. Here's a guy whose career spans 6 or 7 decades and has probably earned tens or hundreds of millions over his lifetime who is now in his 80s and can't make his mortgage payments. The report blamed it on the fact that he got injured last year and has been unable to work. So what? What happened to all of his money? Does he have no savings? Has he no disability insurance? Why does a guy in his 80s still have a mortgage anyway?

[sweeps]

Heeeeeeeerreee's..... Bankruptcy!

I read that he also gave up a lot of money on divorce settlements and he invested in a lot of California real estate (oops).

[rob62521]

Disneysteve, I wondered the same thing. I saw it last night on a program while dh was flipping channels. It's sad to think at 85 he still "had" to work in order to meet his obligations. The program did show the interior of his house in 2005 with all of it's Christmas decorations and it was pretty posh. Guess he never planned ahead.

[Ima saver]

I saw that also, and I thought, why does a guy that is 85, still have to work??

[sounderella]

Yeah I'd heard that...but it said he'd been out of work since he broke his neck last year. I was wondering too why he didn't have disability. If I remember correctly.....I think they said he bought it at $4 mil and owed like $600k.

[SnoopyCool]

I heard this yesterday and could not believe it.

[savemachine]

I heard about that too. His publicist says that he's looking for a job to fight off the foreclosure.

He's 83, why is he looking for a job.
His home is being foreclosed upon, why does he have a publicist.
And as disneysteve mentioned, he was EVERYWHERE. Commercials (Budweiser, insurance), Carson's sidekick for 30 years. Does he no have any savings?

[tripods68]

Yes...its called "poor financial planning". I heard his house is worth around 5 to 6 million. He might still owe 4 million but he would still gets some money back. At least he qualifies for medicare and social security if all fails.

[Joan.of.the.Arch]

Maybe inadequate insurance to see him through all the care needed for the broken neck helped push him over the edge, too. I could see that he may have hired 3 full time private RNs either at home or elsewhere, then perhaps physical therapists, occupational therapists to see him privately at his residence....who knows what the degree of disability from the broken neck is. I mean Is the guy really able to do any work now? Can he walk? Move his legs, hands, arms? Is he on a ventilator perhaps?

[Scanner]

I agree with Joan of Arc. . .the leading cause of bankruptcy is medical bills in the United States. With the broken neck. . .it may be the cause.

Makes you wonder why George Bush passed the law cracking down on bankruptcy in favor of creditors vs. debtors.

[Scanner]

PS: I do agree that he should liquidate his house, take the equity out, and meet his obligations. Just because he led a posh lifestyle, doesn't mean he can't or shouldn't retire to a small bungalow somewhere.

[sweeps]

You guys are joking right? He was worth $200 million at one point. Broken neck or not, you shouldn't be facing bankruptcy.

On the other hand, MC Hammer went bankrupt and I think his neck is fine.

[disneysteve]

Originally Posted by sweeps

You guys are joking right? He was worth $200 million at one point. Broken neck or not, you shouldn't be facing bankruptcy.

I agree. Obviously, we aren't seeing his balance sheet, but he is $600,000 behind on payments. How did a guy worth $200 million end up at risk of losing his home over well under $1 million? Surely he didn't spend $199 million on medical care.

I don't mean to kick a man when he's down. I always liked Ed McMahon. Used to watch the Tonight Show all the time. But I posted this to make a point to all the people who think, "If only I made more money, all my financial problems would disappear." As JimOhio always says, most people don't have an earning problem, they have a spending problem.

[tripods68]

I think the keyword "was" worth $200 million at one point long time ago. But in Hollywood circle, those $$$ and the rich and famous lifestyles comes in and go like "waters" as if there is no tomorrow. Too bad 'old Johnny is no longer around to bail him out. What a shame....!

[ScrimpAndSave]

...I still feel bad for the guy.

[boo151]

At first I thought the same thing you did but his situation appears to be fairly complex. Apparently he had a major mold problem at his mansion. It was so bad that it killed his dog. He won a settlement to pay for the damage but after the attorney's fees there wasn't enough left to completely cover repairs. That supposedly created the need for the large mortgage. Also, 80 year olds (even if they are working) can't qualify for disability insurance even if they had it when they were younger. Too high of a chance for a claim so the insurance companies typically won't go past around age 67. It varies by company.

KC

[sweeps]

Yes, but he and his wife admitted they made bad decisions.

He'll be fine. He's a likeable guy. He can always do more commercials. And I'm sure he can count on others in the business to help him out.

[ScrimpAndSave]

Poor lil old man. :*(

[LivingAlmostLarge]

Wow, crazy. He used to give away million dollar checks.

[maat55]

If only he had been a member of this Forum. He could have been the next Donald Trump.