Justin Perry's Mortgage Blog

Mortgage rates are up and mortgage applications are down.   It is becoming increasingly difficult to get approved for a mortgage loan which makes it hard to buy a house or refinance your current mortgage.  Just when I think I have seen it all I find a column like this one from http://www.thetruthaboutmortgage.com/. 

This is getting ridiculous, but according to the Wall St Journal, former Star Search host and sweepstakes presenter Ed McMahon is facing foreclosure.

Per the Journal, McMahon’s Beverly Hills, CA mansion, which is currently listed at $5.75 million, was $644,000 in arrears on a $4.8 million loan as of February 28 when none other than Countrywide filed a notice of default.

McMahon also has a home equity line of credit of $300,000 tied to the residence, although that may have been frozen long ago when Countrywide began limiting borrower’s ability to draw against their faltering property values.

Real estate agent Alex Davis told the WSJ that the property has been on the market for roughly two years, and has yet to attract any buyers despite a price reduction.

According to Davis, McMahon fell behind on his mortgage payments after breaking his neck in a fall 18 months ago, obviously keeping him away from any possible projects.

I found the listing of the home online here, where it is described as a Mediterranean-style celebrity estate in a gated community off Mulholland Drive called The Summit.

According to Wikipedia, McMahon apparently owned real estate worth more than $200 million during the 1990s, largely in Malibu, CA.

While startling, McMahon isn’t the first celebrity to face foreclosure, with the likes of Jose Canseco, Michael Jackson, Marion Jones, and Latrell Sprewell all finding themselves in similar circumstances.

Stay tuned for a bad reality show in which a celebrity attempts to sell their home after receiving a foreclosure notice.