Ed McMahon’s Mansion in Trouble Again

by Peter Vernon on Foreclosure Crisis

Last month, news that Ed McMahon is facing foreclosure shocked the entire nation and showed how deep the foreclosure crisis really is.

With the publicity that the sad news has generated, it is not surprising that there will be buyers who will be interested in purchasing the celebrity’s mansion. There were actually two legitimate offers, one of which was Donald Trump. But the other buyer succeeded to outbid Trump, which meant that things are suddenly looking better for the 85-year old celebrity.

Sadly, the unidentified buyer failed to meet one of the conditions in the sales transaction, causing McMahon’s realtor to cancel the deal last week. And so, once again the announcer’s home is in the market. If the property is not bought within the reinstatement period, McMahon will likely lose his home to foreclosure.

It is still not known if Donald Trump will once again make a bid for the property. Last time, Trump wanted to enter into a lease-back agreement with McMahon. This agreement will allow the television host to stay in his home as a tenant and buy his home once again after a certain period.

McMahon’s realtor is confident that the distressed property will once again attract buyers. Considering that it will be sold at less than its current market value will certainly appeal to real estate buyers and investors.

Nationwide, millions of homes are expected to enter some stage of foreclosure by the end of the year, adding to the already large inventory of foreclosed properties in the market. Home sales have started to pick up in the last month while home prices continue to decline, making market conditions really favorable for buyers.

In fact, states hardest hit by the subprime mortgage mess are showing significant sales activities in its foreclosure inventories, clearly showing that these repossessed properties are generating much interest.