04 Jun 08 Celebrities Not Immune to the Foreclosure Crisis

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According to the Associated Press, Ed McMahon is fighting foreclosure on his Beverly Hills mansion. McMahon, most recently known as the spokesperson for the American Family Publishers’ sweepstakes, reportedly owes $644,000 on $4.8 million in mortgage loans.

At 85 years of age, McMahon became a household name back in the day as Johnny Carson’s sidekick on The Tonight Show. McMahon was also the host of pop-culture TV talent show Star Search during the 1980’s.

February 28, Countrywide Financial Corp. filed a default notice with the Los Angeles County Recorder’s Office, on the six bedroom, five bathroom, hilltop gated community—The Summit, currently listed for sale at $6.25 million.

Howard Bragman, speaking on McMahon’s behalf, says McMahon is in negotiations with Countrywide.

Tags: countrywide, ed mcmahon, foreclosure crisis, howard bragman, johnny carson, star search, the tonight show

03 Jun 08 Real Estate Buying Season?

According to the Commerce Department, home sales increased 3.3 percent in April from March, when home sales dropped a staggering 11.1 percent. However, some areas that appeared to be immune to the recent housing slump experienced drastic declines in home sales during the same period; notably King County, Seattle, where home sales dropped more than 33 percent.

The summer months are considered by many as the home-buying season, however some economists have warned that home prices may continue to fall as much as 10 percent before the housing market begins to recover.

The main issues affecting home sales are the abundance of homes for sale, more than 4.5 million, and the tighter mortgage lending practices, which have greatly reduced the amount of home sales. An inbound loan officer for Countrywide told me that his phone rings off the hook by potential buyers; however, because the individuals fail to meet the lending requirements, he is lucky to close one in twenty callers.

Tags: countrywide, department of commerce, home loan, home prices, home sales, Homes for Sale, mortgage, Real Estate