Heeeeeeereeeee's foreclosure!
Wednesday, June 18, 2008 at 09:34PM While I'm off topic, another observation.
I understand how wealthy people lose their fortunes -- it happens all the time. Exhibit A: MC Hammer. Exhibit B: Mike Tyson. Exhibit C: Ed McMahon.
Evidentially, second-banana Ed blew through an estimated fortune of $140 million, and now he's unable to make the mortgage payments on his $7 million Beverly Hills mansion.
A sad story, but not altogether unusual. What's sort of baffling, however, is the fact that he owes roughly $700k in mortgage payments, but the house is worth an estimated $5-6 million. That's actually a pretty good debt-to-equity ratio, which begs the question: why doesn't he just sell the damn thing.
Evidentially, he's been trying. Two years ago he listed the mansion at $7.6 million. When there were no takers, he dropped the price to $5.7 million, and when there were still no takers, he inexplicably raised the ask to $6.5 million. Now I'm beginning to see why he's broke ... that's a pretty interesting financial strategy.
The truth is, McMahon didn't want to down-size his lifestyle, and now he's stuck in a home he can't afford. Over the past few days, he's been making the media rounds, appearing on the Today Show and Larry King Live as part of his "foreclosure here I come" world tour, in search of sympathy and handouts. What he should be doing, however, is finding a real-estate agent who didn't learn his craft from the Alan Arkin character in Glengary Glen Ross, and appropriately price and sell the house.
Even if he unloads if for $4 million, he'd still pocket a princely sum and could buy a condo in a fancy retirement village somewhere. What does a 90 year old need with a mansion anyway -- how many TV's does it take to watch Matlock reruns?
Reader Comments (5)
supposedly part of the blame for his bankruptcy rests in his wife... she has a habit of overspending. Her AmEx bill alone is 'legendary' at more than $750K. But then again, this is according to TMZ.... haha
Nick, this is tragic. Is there a link to the foundation thats taking donations?
LOL FTR!!!!!! GOOD ONE :)
WAAAAAAAAAAAA poor Ed,Maybe publishers clearing house will show up at his front door with the BIG CHECK
no, you have it wrong. he was learing about inventment ideas from Evander Holyfield and somehow thinks went awry