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Ed McMahon: Foreclosure for the Formerly Rich and Famous

It is often stunning and sad to see a much-loved celebrity fall on hard times. When the news surfaced that Ed McMahon is currently faced with losing his home to bank foreclosure, many Americans could relate to financial problems, but wondered how he possibly could have gotten so far behind on his bills.

Unlike many celebrities that get into legal, criminal or financial trouble, McMahon has been surprisingly open about his financial dilemma. He says that his circumstances are very similar to the millions of other Americans who face losing their homes to foreclosure. Although not everyone faces losing a multi-million dollar Beverly Hills mansion to foreclosure, the circumstances leading up to this problem are the same ones shared by many Americans who are struggling financially, filing bankruptcy or losing their homes to foreclosure.

McMahon recently did an interview with Larry King on CNN's Larry King Live and revealed that overspending, poor financial planning, an injury that has prevented him from working for the last 10 months and the nation's overall poor economy are to blame for the possible foreclosure of his home. His home in Beverly Hills has been up for sale for over two years, but has failed to attract a single offer.

It is not completely surprising that the home has not sold. McMahon reportedly has a $4.8 million mortgage on the property with Countrywide Home Loans Inc. and says that he and his wife are $644,000 behind on the mortgage payments. With the dreary state of the housing market, even at deep discounts "regularly priced" homes are not selling and the number of people who could possibly afford to purchase McMahon's home and also happen to be in the market for a Beverly Hills mansion is pretty small. The star says that approximately 50 individuals and organizations have looked at the home since it has been on the market. The property is listed at $6.25 million and is in "The Summit", the same exclusive gated community that Britney Spears calls home.

The former "Tonight Show" sidekick to Johnny Carson says he has also been through "a couple" of divorces over the years that have hurt his financial status. McMahon and his wife Pamela say that they are in negotiations with Countrywide to set a foreclosure date for the home but are still optimistic that the home could be sold in time.

McMahon is not the only celebrity that has faced financial problems like bankruptcy and foreclosure. Widow Veronica Hearst fought to save her 52-room Villa Venezia in Palm Beach from foreclosure, Michael Jackson's Neverland Ranch was nearly lost in foreclosure and Evander Holyfield recently rescued his 54,000 square-foot home in suburban Atlanta from a scheduled July 1 foreclosure auction. TMZ recently reported that because of rap mogul Suge Knight's bankruptcy, the assets of his Death Row Records Inc., including the rights to all of the recordings of the late Tupac Shakur, Snoop Dogg and Dr. Dre, will be sold at auction on June 24, 2008.

While it would be a stretch to claim that celebrities are just like the rest of us, it seems to be true that they face the same type of financial hardships as the rest of the world and that they are not exempt from the foreclosure crisis and problems stemming from the nation's poor economy.

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