The mortgage crisis is so bad, it's now claiming celebrities as victims: Evander Holyfield's $10 million home in Fayette County, Georgia; Jose Canseco's home in Encino, California; and Ed McMahon's $4.8 million home in Beverly Hills, California are being foreclosed.
One guy that averted foreclosure was Michael Jackson: his Neverland Ranch auction was cancelled when an investment company bought the loan.
Ed McMahon even went on Larry King's show to explain how he got into financial hot water:
King: And the payments, you can't make -- what's the problem?
Ed McMahon: Well, if you spend more money than you make, you know what happens. And it can happen. You know, a couple of divorces thrown in, a few things like that. And, you know, things happen. You want everything to be perfect, but that combination of the economy, I have a little injury, I have a situation. And it all came together. [...]
King: But, Pam, the assumption is that the McMahons are multimillionaires and multimillionaires -- how much behind are you, $644,000, right? That's what's reported? ... If you're a millionaire, shouldn't you be able to pay $644,000?
Pam McMahon: I think over the years, you know, it's just a kind of a combination of maybe Ed working so hard and not kind of looking at proper management, which happens a lot. ... Because you're a celebrity, people think you have a lot more than you have. And you always want to take great care of all of your friends and your family and everybody, and you do. And you don't, and I think, you know, we didn't keep our eye on the ball. We made mistakes.
Transcript of Ed and Pam McMahon's interview with Larry King: Link