Archive for Beverly Hills

Ed McMahon Fighting Foreclosure On His Beverly Hills Home

Posted in For Buyers, For Professionals, For Sellers, Real Estate with tags , , , , , , on June 5, 2008 by Peter Nelsen

I watched this story last night on Access Hollywood and had to post it here as warning and a lesson.  This morning it was picked up by the Today show on NBC.  This is particularly sad story for myself as I have been welcomed into the McMahon home on a few occasions with his adopted stepson, whom I attended college with.

I say a warning because this threat of foreclosure is affecting a large sub-section of our society and I feel that everyone needs to be aware that anyone can be in this situation at one time or another.  Many are able to turn their situations around, as I hope the McMahons will.  I also think that the lending institutions are aware of the mounting threat and have some systems in place to help those that are proactive and contact the bank before being in default.

When I say lesson, I mean a lesson for home sellers and real estate professionals.  Both of these groups need to look at the details of the McMahon story and take them into consideration.  The home has been for sale for two years for $6.2 Million.  It has been reported that the McMahons are in delinquency of  $644,000 and that they have loans of $4.8 Million.  Your real estate professional should be your real estate adviser.  The McMahons have known they were in default for at least a few months to wrack up $644,000 in arrears and that information should have been made crystal clear to their agent early.  In response, their real estate professional could have advised an immediate and decisive price reduction to get the home sold. 

If you are currently facing foreclosure, tell your real estate professional as such and how far along in the process you are.  Let me repeat, tell your real estate agent you are facing FORECLOSURE.  Many real estate professionals have experience in dealing with foreclosures and the lending institutions who are filing these defaults.

Would you rather sell your home for less than what you owe and be a little in debt with a decent credit score or have your financial situation splashed on national television for everyone to see and your credit destroyed if you go all the way to foreclosure?  Okay, so your foreclosure might only make the local newspaper, but your friends and neighbors will find out and your credit will be affected.  Not being able to pay your mortgage is NOT a crime, but allowing the bank to take it without a fight is.  Be proactive and enlist the help of a real estate professional who knows how to deal with preforeclosures, including marketing to investors and savvy home buyers looking for a deal as well as aggressively pricing the property.

Lastly, I want to address the main factor that affected the foreclosure situation and the wrong way to place blame.  The neck injury which kept Ed McMahon from working, thereby creating a disability, should have been covered by some sort of disability insurance.  Everyone should consult their insurance professional when purchasing a home and inquire about not only hazard and life, but as important disability insurance.  It is more likely you will be injured and unable to work than the likelihood of death, as shown at MetLife.  In placing blame, it was not the paparazzi that have kept the McMahon home from selling; it was probably the price and the “black mold” history.  Perhaps the home needs a new tag-line like, “Live like a celebrity, paparazzi included at no additional charge for a limited time!” or more simply “Home in Foreclosure, Celebrity Legend Considering All Offers”.

Ed McMahon Fighting Foreclosure On His Beverly Hills Home