The story is hard to beat: Donald Trump will buy Ed McMahon’s
Beverly Hills mansion — a property facing foreclosure — and
then rent it back to the 85-year-old entertainer.
According to the Los Angeles Times, Trump will pay off the
existing $4.8 million debt, acquire the property, and then
lease it back to the long-time sidekick of Johnny Carson.
The house was last listed at $4.6 million so Trump seems
unlikely to make a profit anytime soon. It is, instead, a nice
thing to do — Trump, after all, hardly needs either the PR nor
the cash. As to McMahon, he has a long and highly-visible
history in the public arena, a history that includes extensive
service in the Marine Corps and support for charities. It’s
good to see him helped.
Thing is, it would also be great if more beleaguered
homeowners could get such assistance, say folks named Smith or
Jones, folks who have never been on TV or owned a mansion.
When first announced, the FHASecure program was supposed to be
a way for Smith and Jones to refinance toxic loans. This would
have been good for borrowers (no foreclosures), good for
lenders (reduced losses)and good for neighborhoods and
communities (smaller inventories of unsold homes, fewer
low-ball comps).
To a huge extent the FHASecure program has not worked. Since
October 1, 2007 HUD reports that a total of 3,491 delinquent
conventional loans have been refinanced with FHA mortgages.
That’s it.
I’m happy that McMahon gets to stay in his home, I’m glad a
foreclosure was avoided and I think Trump did a decent thing.
But really, won’t it be great if Uncle Sam had as much
compassion and common sense as The Donald?
For the full LA Times story, see:
Donald Trump to buy Ed McMahon’s house.
