Time to downsize.

Why would someone with that kind of cash flow ever have a mortgage at age 85?  Am I supposed to feel sorry for him?  We really need to have better financial education in our schools and homes.

I agree with turtle pond, we really need to teach stewardship and finances in high school. I have a college degree but didn't even know how to write a check when I graduated

I hope someone shows up to his home with an oversized check for $5,000,000 and a bunch of balloons!

My wife and I are teaching teaching financial stewardship and the power of saving to our kids NOW - while they are young (currently 8,6,2,1). Gary talked in SNAPS how his father drilled the saving mentality into him as a kid. My wife and I did not have that mentality and still pay a price for that today. I want my kids to honor God with their time, talents and finances - so if they hit adulthood with money in the bank, off the credit grid and comfortably living beneath their means they will have much less stress than their peers (and their parents!)

There is no reason for Ed McMahon to be this much in debt at 85! His cash flow certainly slowed as he got older and especially after his health went south (I read he broke his back or neck not too long ago) and he still owed a couple million? That's not the economy - that's a poor fella trying too live the Hollywood life far after that lifespan ran out.

Speaking about "edu-ma-cating"... you gotta watch this video and read this article....

http://www.msnbc.msn.com/id/24966666/?GT1=43001

You are corRECT sir! ;)

Oh my God...I feel soooooo sorry for poor Ed!  Is there a way we can take up a collection and help him out?  All we need is 100,000 people to each give $6.44 (about the price of lunch at McDonald's) to Mr. McMahon and he'll be able to keep his house for at least another month...

I really don't want to see Ed McMahon living in a cardboard box like Randolph and Mortimer Duke...c'mon people...let's help the poor guy out!!!  Does he have a paypal account?

Sounds like someone who lives or lived beyond their means to keep up a certain lifestyle.

His house has a horrible mold problem, right? I would bet he can't sell the house due to the mold. It's probably considered a tear down. Let's not jump to conclusions on how he handled his finances. I would think that finding out your 4.8 million dollar home is worth nothing and that you have millions still due on it (plus dealing with the costs of mold removal and the health implications involved PLUS breaking your neck) is enough to destroy even the best laid financial planning.

Greetings Gary

So comparatively, of the west coast homes that you sustain. Can you share with us any finacial stats of what is more economical ? Canada or South LA, or Seattle ? What Im trying to see is if the economy is slowing relatively in Canada as well. Thanks for sharing.

@JenniKi - 

HAD a mold problem. That was years ago, the problem was resolved and he got many millions of dollars in a settlement from it. He did break his neck a year or so ago, but that was a year or so ago. He is a mostly retired guy. Had he taken care of the money that he made over the years, banked the settlement from the mold issue and not treated his home like an ATM machine he wouldn't be in this position.

I read on one of the news websites (CNN maybe) that Ed has some money offshore. I don't know about Ed, but if I were going to move money off shore it would be large amounts of money that I wanted to hide from someone. Like Countrywide.

Yes, Canada is slowing as is everywhere. It only makes sense, there is a worldwide credit crisis. I have no idea what is supporting these economies other than the world is doing fine, just not the U.S.

But things in Canada for sure have slowed down, as I would have expected.

How prophetic that he worked for "Publisher's Clearinghouse" Pretty soon he's going to be clearing out his house arf arf arf

Just heard that Evander Holyfield is also facing foreclosure!

Mr. McMahon has been living for the past two years in one of his other homes. He has been trying to sell off the house you all read about for more than two years now since he moved out and the mold issue was solved. Thats why he let payments slip by each month because he thought at $6.6 million it would have sold already. They only paid $4.2 mill. about ten years ago and its right down the street from Brittney Spears. He has homes all over the place and can get liquid cash anytime he needs it. What he might be doing is just taking the rightoff since it wont sell and just let it go. He and his wife are in no way broke. He has investment property all oover Hollywood and beyond. Office buildings and much more all paid in full and all rented out.

The other guy that cracks me up is Evander Holyfield who everyone thinks is out of cash too. Thats a big joke, He has money coming in all the time and court papers just filed by his wife against him in a divorce case just proved this. The guy made over $220 million and is broke? I think not.

I bet we will never read about Gary Fong going bust.....

McMahon talks to Larry King about home foreclosure

http://tv.msn.com/tv/article.aspx?news=317772>1=7703

@rmlsf - 

"Pamela McMahon said the couple had less money than people may think"

"If you spend more money than you make, you know what happens,"

"We didn't keep our eye on the ball. We made mistakes," she said.
"It's embarrassing to say the least, and it's sad, because you know, Ed's worked his whole entire life."

"We had nine lawyers, they had nine lawyers," McMahon said.
"By the time that's all over, and you rebuild the house from the outside in. ... A lot of things went wrong."

It wouldn't be a tax break if Ed's house got taken, it would be a liability because he would have to pay income tax for the shortfall once the lender sells it.